NFIB Praises Federal Court Decision Blocking DOL from Enforcing Overtime Rule

Date: November 22, 2016

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 (cell) 

Washington, 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 months. 

“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.”

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