[5]By NFIB,
The National Federation of Independent Business (NFIB) thanks Rep. Kurt Schrader (D-OR) for his introduction of legislation that would reduce the impact of changes to the overtime rule on small businesses. The bill would slow the implementation of a Department of Labor change to the salary threshold for mandatory overtime pay.
“Small business owners are facing a tight deadline to figure out how to comply with the Department of Labor’s big changes to overtime rules,” said NFIB President and CEO Juanita Duggan. “We estimate that nearly half of all small businesses have an employee who could be affected by the changes. Congressman Schrader’s sensible measure would provide relief for many of these businesses and give them more time to plan for payroll changes.”
Under a rule finalized by the Department of Labor, the threshold for mandatory overtime pay would increase to $47,476 on December 1, 2016. This more than doubles the current threshold of $23,660. Under Schrader’s bill, the full amount of the proposed increase would only take effect after December 1, 2019. Gradual increases would be implemented annually.
“Congress needs to take action quickly before small businesses are forced to take drastic measures to comply with the overtime changes,” said Duggan. “Our members are scrambling to figure out how to work under the new threshold. They are contemplating reductions in benefits and shifting workers to hourly pay. The deadline is looming and we need bipartisan action to forestall this damaging rule.”