NSBA Cautions Against New Overtime Rules

September 3, 2015

Thursday, Sept. 3, 2015

Molly Day

Washington, D.C. – The National Small Business Association (NSBA) today submitted comments warning against the Department of Labor’s (DOL) proposed rules on overtime pay. In addition to the massive threshold increase, NSBA also criticized the DOL’s process for not allowing an appropriate time frame for stakeholders to properly study and survey the far-reaching impacts the rule will have.

“Beyond the 113 percent increase in salary threshold, the Department raises the possibility of changes to the ‘duties test’ but offers no specific proposals to which businesses can respond” stated NSBA President and CEO Todd McCracken. “Therefore, any such change would be wildly unfair to the millions of small businesses that will be impacted.”

Since the release of this rule, NSBA has urged its members to weigh-in on how the 113% increase to the salary threshold would impact their businesses, and encourages small-business owners to comment by the Sept. 4 deadline. Unfortunately, the summer release coupled with a mere 60-day comment period and a dismissive refusal to extend the comment period by the DOL indicates a clear intent to stymie small-business input into the process.

Among the key issues raised in NSBA’s comments: the cost of compliance for small businesses will be much greater than the DOL estimate; changes to the duties test are likely to miss the fact that there is no bright line between “exempt” and “non-exempt” in the typical small business workplace; the creation of new hourly reporting and tracking requirements are likely to be a disproportionate burden on smaller firms; the rule could force struggling small firms to reduce employee hours; and employee morale will take a significant hit where employees must be  “downgraded” from exempt managers to non-exempt workers.

Please click here to download NSBA’s comment letter.

Celebrating more than 75 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA’s 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.