Small Business Owners Await Court Cases, Federal Legislation To Block Or Delay Rule
As a December 1 deadline approaches for the Labor Department’s new overtime rule to take effect, small businesses are left wondering whether the outcome of pending court cases or legislation working its way through Congress can help delay or block the rule. The CNHI News Service (AL) reported that Sen. James Lankford (R-OK), a sponsor of three separate measures “to delay, phase in and stop the rule, acknowledged in an interview that passing any of the measures and overriding a veto promised by President Barack Obama before the rule takes effect Dec. 1 could be challenging.” Additionally, there have been no hearings yet set for “the lawsuits filed in a U.S. district court in Texas” to block the rule, “and it’s unknown if the court will take up the case in time.” NFIB Pennsylvania Legislative Director Neil Lesher said, “The feedback we’re getting is one of frustration” on the part of small business owners, many of whom “don’t have an HR department or a payroll administrator.” For them, the new overtime rule is “just another regulatory burden they have to wade through instead of spending their time growing their business.” NFIB’s national Legislative Affairs Director warned that “the accumulation of so many new mandates through executive authority is too much to bear,” he said.
What Happens Next
Sen. Lankford’s bill to delay the overtime rule until June 1, 2017 is still pending in the Senate. Unless the bill is pushed through within a few weeks, or the two lawsuits that are pending are resolved, it appears the new overtime rule will take effect as scheduled on December 1.
What This Means For Small Businesses
Small business owners face a tough regulatory environment in which to do business. Additional burdensome requirements from the Labor Department will not only add more paperwork to the process of doing business, but small businesses will see their labor costs soar.
Additional Reading
Bloomberg BNA also noted business groups’ efforts to halt 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.
