Small Business Urges Congress to Pass Walberg Bill to Delay Overtime Rule

Date: September 21, 2016 Last Edit: September 22, 2016

Contact: Kelly Klass, (609) 713-4243

NFIB warns that Congress needs to act on overtime deadline before small business owners face potentially ruinous penalties

Washington, D.C (September 21, 2016) – Legislation introduced today by Rep. Tim Walberg (R-MI), which would push back the looming deadline for the Department of Labor Overtime Rule, should be an urgent priority for Congress, said the National Federation of Independent Business (NFIB) today.

“It’s impossible for many small businesses to meet the December 1 deadline, and the clock is ticking,” said Juanita Duggan, NFIB President and CEO.  “In just a few weeks, many thousands of small businesses could face heavy penalties for being out of compliance.  NFIB is demanding that Congress take action immediately.”

The DOL finalized the overtime rule in May, which makes millions of workers eligible for mandatory overtime starting on December 1.  Small employers do not typically have HR departments and compliance professionals to help them implement new rules.  They will now have to scramble to adjust their budgets, restructure their payroll systems, and possibly reclassify workers.  It’s a heavy lift, and a wide range of employers including small businesses, universities and colleges, local governments, and non-profit organizations and charities will suffer disproportionately. 

A coalition of business groups, including NFIB, and a coalition of twenty-one states yesterday filed separate lawsuits asking a federal court to block the Overtime Rule. NFIB last week also filed a petition requesting that the DOL delay the compliance deadline until June 1, 2017, giving small business owners a crucial six-month extension. Rep. Walberg’s bill recognizes the unrealistic deadline for employers, and orders the DOL to postpone the rule just as NFIB had asked.     

“Small businesses are very grateful to Rep. Walberg for making this a high priority, and we strongly urge the House to take it up before time runs out,” said Duggan.  “Every member of Congress who plans to campaign this fall as a supporter of small business should be willing to vote for this bill before they go back to their districts to campaign.”

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