The National Federation of Independent Business (NFIB) has criticized the Massachusetts Legislature for incorporating the “Secure Choice Savings Program” into the FY2026 budget without conducting hearings or seeking public input. The program, according to NFIB, introduces a significant policy change by mandating businesses with 25 or more employees to enroll workers in a state-run retirement plan or face penalties.
Christopher Carlozzi, Massachusetts state director for NFIB, stated, “Without a public hearing to determine the financial impact on Massachusetts small businesses and their workers, the state legislature has blatantly shoehorned a major policy change without any oversight or public input into its new $61 billion FY2026 budget.” He added that small businesses are already managing multiple state-imposed payroll deductions and do not need additional compliance costs.
Previously filed Secure Choice Savings Program bills had allowed for public comments when reviewed by the Joint Committee on Financial Services. However, this time, NFIB argues that the legislature bypassed the public hearing process by embedding this policy within a larger budget bill. The proposed program includes a $250 per employee fine for non-compliance and permits employees to take civil action against employers.
Carlozzi questioned whether there was any opportunity for stakeholders to comment on this policy’s impact during the current legislative session. “Again, lawmakers’ policy choices and pro-small-business rhetoric are in conflict,” he remarked. He emphasized that workers must actively opt out if they do not want paycheck deductions.
While NFIB supports efforts to address barriers to retirement savings, Carlozzi concluded that they oppose imposing another payroll mandate on employers which could lead to fines and lawsuits.
NFIB has been advocating for small and independent business owners across America since its founding in 1943. For further information about their work, visit nfib.com.
