Small Business Celebrates After Overtime Ruling

Date: November 28, 2016

Preliminary Injunction Gives Businesses Reprieve From Looming Regulatory Deadline

CNBC reported that a Federal judge in Texas has ruled in the NFIB’s challenge to overtime regulations set to take effect Dec. 1. The judge “granted a nationwide preliminary injunction halting the implementation of” the rules. This means that small businesses will have a reprieve from seeing the salary threshold for overtime eligibility double from $23,000 to more than $47,000 overnight. Backlash against the rule had been strong, with two separate suits brought involving 21 states as well as a multitude of business groups including NFIB. The judge’s ruling is likely to pave the way for further undoing of this burdensome Labor Department regulation in the new year once Congress begins a new session and a new administration enters the White House. NFIB research found that “44 percent of small businesses employ at least one person that would be eligible under the rule,” meaning many small businesses have dodged an expensive regulatory change through this preliminary injunction. Commenting on the ruling, NFIB President and CEO Juanita Duggan said, “Small business owners remain opposed to the overtime rule and we are going to keep fighting. 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.”

What Happens Next

CNBC noted that the Labor Department issued a statement saying, “We strongly disagree with the decision by the court.” While the department has said it is considering its legal options, there is no indication as to whether the government plans to appeal the judge’s injunction.

What This Means For Small Businesses

Small Business Trends quoted NFIB President and CEO Juanita Duggan as saying that the ruling “is a victory for small business owners and should give them some breathing room until the case can be properly adjudicated.”

Additional Reading

The Wall Street Journal published an editorial applauding the ruling.

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.

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