Bill to Delay Overtime Rule by Six Months Now Faces Senate; White House Threatening Veto
Reuters reports that on Wednesday the House in a 246-177 vote “approved a measure to delay by six months the Obama administration’s rule to extend mandatory overtime pay to more than 4 million workers” by raising the eligible annual salary cap from $23,000 to more than $47,000. Rep. Tim Walberg (R-MI)’s measure, known as the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act, would delay implementation of the Labor Department’s overtime rule from Dec. 1, 2016 to June 1, 2017. The legislation faces “likely opposition from Senate Democrats,” but Republicans up for re-election can use the bill to “tout their opposition to the rule in their home districts.” Reuters notes that the NFIB and other business groups, and 21 states have filed legal challenges to the rule, arguing that the Labor Department “abused its authority with its drastic increase of the salary threshold.” The Hill notes that five Democrats joined all House Republicans in voting to approve the measure. The Hill reports that on Wednesday, Sen. James Lankford (R-OK) introduced the measure in the Senate in anticipation of the House vote.
What Happens Next
Opposition from Senate Democrats on the measure is likely, and The Hill notes that the White House has threatened to veto the measure. Therefore, the bill’s fate remains uncertain.
What This Means For Small Businesses
Small business owners will face burdensome costs from new overtime regulations that greatly increase the annual salary cap for overtime eligibility. In an op-ed in The Hill NFIB President and CEO Juanita Duggan urged a delay in implementation of the overtime rule, as Rep. Walberg’s measure would provide. She said, “NFIB has opposed the rule from the beginning because of the potential damage it will cause for small businesses. We are working every angle during this crucial time, as our members would expect nothing less.”
Additional Reading
The Daily Caller and Global Trade Magazine also reported on NFIB’s efforts to delay the implementation of the overtime rule.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
