Small Business Association Pushes for Delay in US Overtime Rule

Small Business Association Pushes for Delay in US Overtime Rule

The new overtime rule announced by the US Department of Labor back in May, which will raise the salary threshold for exempting employees from overtime pay from$23,660 to $47,476 a year when it goes into effect on December 1, is expected to hit small businesses particularly hard. Today, the National Federation of Independent Businesses, the country’s largest association of small businesses, urged the Labor Department to delay implementation of the rule, USA Today reports:

“In many cases, small businesses must reorganize their work forces and implement new systems for tracking hours, record keeping, and reporting,” says NFIB president Juanita Duggan. “They can’t just flip a switch and be in compliance.” The group is asking for a delay until June 1.

But in a statement, David Weil, administrator of Labor’s wage and hour division, says officials provided businesses 190 days to comply, “more than three times what’s legally required.” He added, “The December 1 implementation date is a sufficient amount of time (more than six months) for employers to adjust to the new salary level.” …

The requirement will affect about 44% of the 5.5 million U.S. businesses with fewer than 500 employees, NFIB says. About 3.2 million of them employ 10 workers or less. Large corporations with “lawyers, accountants and human resources specialists” who read technical federal notices “may prove able to cope with the new (rule) in a 25 week window of time,” NFIB said in its petition. “But the department cannot reasonably expect America’s small businesses to match them.”

In addition, as Bloomberg BNA notes, the National Retail Federation, Chamber of Commerce, and the American Hotel and Lodging Association are among almost 100 business groups backing a piece of bipartisan legislation which “would phase the rule in over three years and eliminate automatic increases to the salary threshold under which workers are eligible for overtime pay.”