Bipartisan legislation sponsored this week by Rep. David Brat, 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 (NFIB) today.
“Small business owners in Virginia, and across the country, desperately need more time to comply with the new DOL Overtime Rule, or they could face severe penalties and costs,” said NFIB/Virginia State Director Nicole Riley. “If Congress wants to ensure that as many employers are in compliance as possible, there should be no question whether to pass this legislation.”
The DOL finalized the overtime rule in May, which makes millions of workers eligible for mandatory overtime starting on December 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’s 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 earlier this 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. The bill sponsored by Rep. Brat recognizes the unrealistic deadline for employers, and orders the DOL to postpone the rule just as NFIB had asked.
“Small businesses in Virginia are very grateful that Rep. Brat has made this a high priority,” said Riley. “The clock is ticking, and this bipartisan bill would protect thousands of small business owners within every single member of Congress’ district.”
For more information about NFIB, please visit NFIB.com/overtime.
