Small business group says temporary injunction gives local employers breathing room until the case is adjudicated
For Immediate Release
Jack Mozloom, 202-406-4450 or 609-462-5610
D.C. (November 22, 2016) – The
National Federation of Independent Business (NFIB) today applauded a
federal district court’s decision to grant an injunction against the
controversial Department of Labor overtime rule, which would have disrupted many
small employers who were not ready by the December 1st deadline.
“This is a victory for small business owners
and should give them some breathing room until the case can be properly
adjudicated,” said NFIB President and
CEO Juanita Duggan.
The regulation, which would have taken effect
on December 1, 2016, doubles the salary threshold below which employees are eligible
for mandatory overtime. According to NFIB research, 44 percent of small
businesses employ at least one person who would be eligible under the rule.
In September, NFIB and a number of business
groups filed suit in the U.S. District Court for the Eastern District of Texas
to block implementation of the rule. A coalition of 21 state attorneys general
filed a separate action in the same jurisdiction. The court, which combined the
cases, today granted the states’ petition for an injunction. Its next decision
will focus on NFIB’s motion for summary judgement, in which the legality of the
overtime rule will be decided.
NFIB fiercely opposed the rule when it was
announced by the Department of Labor in March. According to Duggan, it would
increase labor costs for small businesses by forcing them to pay overtime to
millions of additional workers.
Since then, NFIB has been fighting on several
fronts. In addition to the federal suit, NFIB is pushing hard on Capitol Hill
for multiple bills that would delay the regulation. It also filed a petition
with the Department of Labor several weeks ago to move back the deadline six
“Small business owners remain opposed to the
overtime rule, and we are going to keep fighting,” said Duggan. “In the
meantime, the court’s decision today is very good news for small business
owners who were under heavy pressure to meet an unrealistic deadline.”
For more information about NFIB, please visit www.nfib.com/overtime.