NFIB: Small Business Urges Senate to Pass Lankford Bill to Delay Overtime Rule

Date: September 28, 2016

Legislation introduced by U.S. Sen. James Lankford, which would push back the looming deadline for the Department of Labor Overtime Rule, should be an urgent priority for Congress, said the National Federation of Independent Business today.

“The clock is ticking, but a lot of small businesses won’t be able to meet the Dec. 1 deadline,” said Jerrod Shouse, state director of NFIB, the state’s leading small-business association.

Juanita Duggan, NFIB President and CEO, said, “In just a few weeks, many thousands of small businesses could face heavy penalties for being out of compliance. NFIB is demanding that Congress take action immediately.”

The DOL finalized the Overtime Rule in May, which makes millions of workers eligible for mandatory overtime starting on Dec. 1. Small employers do not typically have HR departments and compliance professionals to help them implement new rules. They will now have to scramble to adjust their budgets, restructure their payroll systems, and possibly reclassify workers. It is a heavy lift, and a wide range of employers including small businesses, universities and colleges, local governments, and non-profit organizations and charities will suffer disproportionately. 

A coalition of business groups, including NFIB, and a coalition of 21 states last week filed separate lawsuits asking a federal court to block the Overtime Rule. NFIB last week also filed a petition requesting that the DOL delay the compliance deadline until June 1, 2017, giving small business owners a crucial six-month extension. Sen. Lankford’s bill recognizes the unrealistic deadline for employers, and orders the DOL to postpone the rule just as NFIB had asked.      

“Small businesses are very grateful to Sen. Lankford for making this a high priority, and we strongly urge the House to take it up before time runs out,” said Duggan.  “Every member of Congress who plans to campaign this fall as a supporter of small business should be willing to vote for this bill before they go back to their states to campaign.” 

For more information about NFIB, please visit www.nfib.com/overtime.

Related Content: Small Business News | Labor | Oklahoma

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