Small Business Owners Speak Out Against Overtime Rule

Date: September 03, 2015

For Immediate Release
Andrew Wimer, 202-314-2073 or 703-298-5938 (cell)
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Comments Show New Rule Could Backfire on Many Current Managers

 Washington, DC (September
3, 2015)
–Managers working at small businesses across the country could be
harmed by proposed changes to overtime rules. Comments filed by the National
Federation of Independent Business argue that the Department of Labor’s
proposal, which would raise the overtime exemption by 113 percent, fails to
consider the significant economic impact on small business and how businesses
would adapt. NFIB rejects DOL’s predictions of overtime increases and warns
that small businesses will demote managers back to hourly employees and enforce
no overtime policies to keep payroll in line with revenue. NFIB members are
available to speak with members of the media to express their concerns.

“The proposed rule is divorced from reality,” said NFIB Vice President of Public Policy Amanda
. “DOL managed to both greatly overestimate the increased pay that
would result from the rule and underestimate how much businesses would need to
spend to comply. Small businesses owners can’t print money to raise wages. The
steps they will take to comply will hurt the very workers the administration
claims they want to help.”

The comments filed by NFIB clearly lay out the options
available to small business owners seeking to comply with the rule. The current overtime threshold is $23,700.
The president’s proposal takes it up to $50,400, about $970 per week and
provides for annual increases thereafter. Owners will be forced to
either limit manager hours and pick up more responsibilities themselves, switch
managers to hourly employment or split hours between multiple employees. The
Department of Labor estimates of increased pay do not take into account such
efforts to control costs.

Additionally, the
rule fails to take into account regional differences in the standard of living.
In fact, the new threshold is even higher that the state minimums in New York
and California, the two states with the highest cost of living. Small business
owners in rural areas will be especially hard hit by the new rules.

“The Department of
Labor should withdraw this proposed rule immediately and examine the unintended
consequences of a wrenching change to the overtime thresholds,” said Austin.
“The rule could mean the end of flexibility and increased responsibilities for
millions of managers. It could hold employees back and entangle small business
owners in new red tape that discourages hiring and promotion.”

NFIB’s comments to
the Department of Labor are available at For more information about NFIB please


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