Today, the House will consider H.R. 6094, the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act. Introduced by Rep. Tim Walberg (R-MI), chairman of the Subcommittee on Workforce Protections, the legislation will provide a much-needed six-month delay in the effective date of the Department of Labor’s (DOL) new overtime rule.
Today, the House will consider H.R. 6094, the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act. Introduced by Rep. Tim Walberg (R-MI), chairman of the Subcommittee on Workforce Protections, the legislation will provide a much-needed six-month delay in the effective date of the Department of Labor’s (DOL) new overtime rule.
Despite Republican calls for a responsible update of federal overtime rules, in May, DOL finalized an extreme and partisan rule that many are concerned will negatively impact workers, students, and local communities. That is why representatives of our nation’s small businesses, charitable organizations, and colleges and universities are voicing their support for H.R. 6094:
Colleges and universities, which offer stable jobs with good wages and benefits to millions of individuals across the country, are working hard to be in compliance with the new rule. Because the final rule was announced too late to account for current campus budgets and goes into effect with such short notice in the middle of the academic year, it is straining campus budgets and imposing a challenging administrative burden. – American Council on Education, American Association of Community Colleges, American Association of State Colleges and Universities, Association of American Universities, Association of Governing Boards, Association of Public and Land-grant Universities, College and University Professional Association of Human Resources, National Association of College and University Business Officers, and National Association of Independent College and Universities (Link)
We are pleased to support the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act … we are very aware that extreme changes to overtime rules can have a deleterious effect on our workplace flexibility and ability to perform services for children. – Bill Blacquiere, president of Bethany Christian Services, Grand Rapids, MI (Link)
While [DOL] claims this rule will modernize overtime regulations, in reality it does anything but … DOL’s regulations will strip away [mobility] by forcing us to move our salaried employees back to hourly. Regulatory burdens are no way to help America’s restaurants continue to provide countless opportunity to millions of Americans. – Brian Carmody, JK & T Wings, Inc. and Subsidiaries, Shelby Township, MI (Link)
DOL’s changes are too much, too fast for both employers and employees to adjust to without serious negative consequences for all. This drastic rule will curtail career advancement opportunities, diminish workplace flexibility, and damage employee morale. – National Retail Federation (Link)
Such a radical change is creating extraordinary challenges for employers around the country, including chain restaurants … [Employers] are struggling to make difficult changes to their operations in a very short period of time, which will have major implications for their team members. – National Council of Chain Restaurants (Link)
The sudden increase in the salary threshold will have a particularly negative impact on the construction industry with some employers being forced to reclassify impacted workers, limit weekly hours to not more than 40 hours, limit fringe benefits, eliminate some positions, or transition some positions to part-time. – The Associated General Contractors of America (Link)
Not only will this regulation result in decreased flexibility and career advancement opportunities for employees, but it will also undoubtedly lead to an increase in confusion and litigation for employers trying to comply with the new requirements. – American Hotel & Lodging Association (Link)
The new overtime rule will have a long list of unintended consequences for [Associated Builders and Contractors'] members, including increased labor costs and an undue burden on certain regions of the country, including southern states and rural areas … the proposal will greatly restrict the flexibility to provide high-quality construction services. – Associated Builders and Contractors, Inc. (Link)
[National Federation of Independent Business] believes that the overtime rule will substantially harm small businesses and their employees. The rule will result in higher costs for small businesses. Employers need additional time to take measures to comply with the changes to the overtime rule. – National Federation of Independent Business (Link)
With a December 1 implementation date looming, many employers are already putting in place their responses to the regulation. Both employers and employees will feel the effects as employers decide how to cover the costs, and employees will find themselves reclassified from salaried professionals to hourly wage earners with associated loss of workplace flexibility options … and reduced career development opportunities. – Partnership to Protect Workplace Opportunity (Link)
[H.R.6094] addresses some of the concerns held by franchise business owners and their employees with [DOL’s] new overtime regulation … A six-month delay of this deadline will help America’s 733,000 franchise establishments that employ nearly 7.6 million workers … increasing our chances of compliance with the onerous new requirements. – International Franchise Association (Link)
Due to this significant increase, smaller manufacturers and those in rural areas will face enormous impacts in a short period of time … The [National Association of Manufacturers] appreciates the leadership of Congressman Walberg on this issue and urges the passage of the ‘Regulatory Relief for Small Businesses, Schools, and Nonprofits Act,’ H.R. 6094. – National Association of Manufacturers (Link)
Rather than imposing significant burdens on small businesses, nonprofits, and colleges and universities, DOL should withdraw this flawed rule. But with the December 1st deadline swiftly approaching, Congress is running out of time to act. H.R. 6094, the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act, will help provide the relief hardworking Americans desperately need.
