Senate Considers Impact of New Overtime Rule
(Washington, D.C.) – Today the Senate Committee on Small Business and Entrepreneurship will hear testimony regarding the Administration’s proposed new rule on overtime, and the harm it may do to small businesses and their workers. The proposed rule more than doubles the salary level below which employees would be eligible for overtime – to $50,440 annually or less. Non-profits like the American Red Cross have expressed serious concern that this will limit the resources they can provide to disaster response, and small businesses will have a new incentive to shift employees to hourly work instead of annual salaries. Additionally, workers who currently work overtime may be forced to work less, as companies try to curb these excess costs.
The witnesses include Octavio Mantilla, an immigrant from Nicaragua who started as a dishwasher, and has worked his way up to co-owner of Besh Restaurant Group.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“While Americans continue to struggle under the economic burden of more rules and regulations from Washington, the White House seems set to go forward with a new rule that may hurt workers, small businesses, and charitable organizations nationwide. Everyone wants to see American workers earn more – but when Washington imposes rules like this one, they are arbitrarily choosing winners and losers in the economy. Research has shown that as regulation expands, big business becomes bigger while small businesses dwindle because only big business has the resources to comply with such costly regulations. At the same time, it imposes new costs on entrepreneurs that make it harder for struggling companies to thrive and reward the hard work done by employees every day to make that success possible. The administration needs to listen to the concerns expressed here, and go back to the drawing board – to an approach which will help all have the opportunity to succeed.”
For Interviews with a LIBRE representative, please contact Brian Faughnan, 703-678-4581