House Committee Examines Overtime RulesOctober 14, 2015
On Oct. 8, 2015, the House Small Business Subcommittee on Investigations, Oversight and Regulations held a hearing on the recent overtime rules proposed by the Department of Labor (DOL). The hearing, “The Consequences of DOL’s One-Size-Fits-All Overtime Rule for Small Businesses and their Employees,” featured three small-business owners, all of whom oppose the DOL rule, along with a representative of the Economic Policy Institute, a Washington, D.C. think-tank, who argued in favor of the DOL’s proposal.
As background, DOL formally proposed the new rule on July 6, 2015, giving stakeholders just 60 days to comment both on the specific 113 percent increase in salary threshold as well as a vague mention to possible changes to the so-called “duties test.”
The deadline for comments was Sept. 3, 2015 and nearly 250,000 comments were received by DOL. In addition to criticizing the massive threshold increase—from the current $23,660 to $50,400—below which employees must be paid overtime, NSBA in its comments also criticized the DOL’s process for not allowing an appropriate timeframe for stakeholders to properly study and survey the far-reaching impacts the rule will have.
In opening the hearing, Subcommittee Chairman Cresent Hardy stated, “As we’ve seen too often, the DOL has done a poor job of analyzing the impact of this rule on small businesses as required by the Regulatory Flexibility Act. It vastly underestimates the number of affected small businesses and what the real ramifications are for those companies and their employees.”
DOL has said they do not expect to publish a final rule until the sometime in the first half of 2016.
Please click here to view the hearing and/or download various testimony.
Please click here to download NSBA’s comment letter.