U.S. House Committee Holds Additional Overtime Rule Hearing
June 27, 2016—The U.S. House Committee on Small Business held a hearing on June 9 titled, “Damaging Repercussions: DOL’s Overtime Rule, Small Employers and Their Employees.”
The hearing addressed the effect of the U.S. Department of Labor’s recent overtime rule on the small business community.
Committee chairman, Rep. Steve Chabot (R-Ohio), said, “Countless small employers, including small businesses, small nonprofits and small local governments, do not have the profit margins or the budget flexibility to increase currently exempt workers’ salaries to the new salary level. … This means that many workers—particularly entry-level managers—will have reduced flexibility, reduced paycheck certainty and reduced benefits, as well as fewer opportunities for career advancement.”
Albert F. Macre, general partner of Payroll + Services, testified on behalf of the National Federation of Independent Business.
“Instead of increasing wages for certain employees, as the DOL might project, the rule will force small business owners to take more control of employee hours and benefits to keep costs in check,” he said. “These controls could ultimately result in employees taking home less money annually. And don’t underestimate the impact on employee morale, as affected employees are told they must now punch a time clock for the first time in their careers.”