WASHINGTON - House Small Business Chairman Steve Chabot (R-OH) made the following statement after the Department of Labor announced its final overtime rule, which will hurt small employers and their employees:
“Yet again, President Obama has chosen to ignore desperate pleas from millions of America’s small businesses and whack them with a new regulation that will result in job losses, demotions, less flexibility, lower wages, and reduced benefits for their workers. I find it particularly insulting that the Obama Administration chose to unroll this new spool of job-killing government red tape in my home state of Ohio. Small businesses in our state have been a success story and this new rule threatens that success. America’s small businesses do not want this rule and once again they will be hit worst and first to pay for Obama’s liberal legacy.”
The new rule will increase the salary threshold for federally-mandated overtime requirements for white collar workers by over 100 percent, which means that small businesses with thin margins will be forced to make hard choices – such as shifting salaried workers to hourly status, reducing hiring, and cutting workers hours – to remain economically viable. The harmful effects of the rule will hit small employers and their employees the hardest and DOL plans to update the salary threshold every three years.
The Small Business Committee has vigorously opposed the DOL overtime rule for months. The Committee has held numerous hearings and roundtables and sent multiple letters explaining to the administration the damage that will be done to America’s 28 million small businesses and other small employers as a result of the rule. Chairman Chabot is also co-chairing a special House task force on reducing regulatory burdens.