Small business owners know that employees are their most valuable resource. Small business owners work hard to train and retain employees by creating a rewarding workplace. However, government mandates and regulations have made labor issues more complicated than ever.
Small businesses operate differently than large businesses; they do not have human-resources departments to track the changing standards and rules that affect their workforce and workplace.
NFIB urges Congress to simplify the employment process for small business, eliminate burdensome mandates, and prevent cumbersome regulations that inhibit job creation.
On September 24th, the Trump administration issued a final overtime rule expanding overtime pay eligibility. The rule increases the minimum salary for the “white collar” overtime exemption from $23,660 annually to $35,568 annually. This means that employees making under $35,568 annually will be eligible for overtime pay.
The threshold is lower than the threshold of $47,476 that the Obama administration issued in 2016, but never became effective after NFIB successfully sued to stop the rule. The final rule becomes applicable on January 1, 2020.
Small business owners know that more than doubling the federal minimum wage will lead to increased labor costs and tough choices. They must either increase the cost of their product or service or reduce labor costs elsewhere. The reduction in labor costs would be achieved through reduced jobs, reduced hours, or reduced benefits.
NFIB opposes the Raise the Wage Act because 92 percent of NFIB members opposed an increase in the federal minimum wage to $15.00 per hour by 2024 and annual increases in subsequent years in a recent member ballot.
The U.S. Department of Labor has proposed a NEW joint employer rule under the Fair Labor Standards Act (FLSA). If your business uses contractors or is a contractor, this rule might impact your business. The proposed rule is open to comment until June 10, 2019.