The Department of Labor (DOL) recently announced a series of listening sessions across the country that will focus on the so-called Overtime Rule—a statute that if implemented will raise the salary threshold for employees that would be exempt from overtime pay. Although the rule—which was suppose to go into effect December of 2016—was delayed by federal injunction, it is now being reexamined.
These listening sessions will give small business job creators the opportunity to have their concerns about implementing such a rule heard. Because although the rule may sound worker friendly, it’s anything but.
Requiring employers to pay more employees overtime will drive up the cost of labor—which will force small businesses to cut costs elsewhere. In fact, according to the American Action Forum, compliance costs would cost businesses an additional $2.5 billion over 10 years. The end result will be reduced job opportunities, a reduction in hours, scaled back benefits and more employees classified as hourly, rather than salary.
The Overtime Rule is no good for businesses or it’s employees. The Department of Labor needs to hear that as they travel across the country listening to what concerned citizens and small business owners have to say. Register for one of the stops here.