In a suit filed in federal court, the National Federation
of Independent Business (NFIB) asserts that the Department of Labor has
exceeded its statutory authority with the imposition of a new overtime rule.
In a separate action, a coalition of 21 states, including Michigan,
also filed a lawsuit challenging the rule. “The attorney general is suing
on behalf of the people of the state of Michigan because this rule could have a
significant impact on taxpayers and job creation,” Schuette spokesperson
Andrea Bitely said. “We joined with nearly half of U.S. states to fight
against a federal overreach that could cost Michigan residents jobs and
Under the new rule, salaried workers making less than
$47,476 must be paid overtime. That figure is approximately double the
previous threshold of $23,660, potentially making more than 5 million employees
suddenly eligible for overtime. The rule is set to take effect on December 1,
2016, a deadline that many small employers simply cannot meet. Joining NFIB in
the lawsuit, filed in the United States District Court, Eastern District of
Texas are the U.S. Chamber of Commerce and more than 50 business groups across
In addition to its legal challenge to block the rule, NFIB
is trying to persuade the DOL to extend the deadline to give small businesses a
reasonable chance to make the adjustments. Last week, the organization
filed a petition with the department formally asking that the deadline be
pushed back until June 1, 2017.
These are the kind of regulations coming out of Washington
that are killing any small business recovery in this economy. NFIB research
shows that the number one impediment to small business progress is uncertainty
and this is exactly the kind of bureaucratic over-reach that causes it.
Many small businesses cannot afford the new costs associated
with the new DOL rule, and may be forced to move managers to hourly employees,
limiting them to 40 hours per week. This move will likely be viewed as a
demotion by many, impacting worker morale and signaling there is little
opportunity for growth in the company. It could also cost current managers some
of the perks they enjoy such as flexibility of hours and benefits like health
Want to know about the new DOL rule and what you need to do
to comply if the rule goes into effect in December? Sign up for an NFIB Seminar
in October at various locations around the state HERE.
For more information about NFIB, please visit www.nfib.com/overtime.