The Department of Labor’s proposal to expand overtime eligibility would make it harder for small businesses to grow and create jobs, Rep. Cresent Hardy, Chairman of the Small Business Subcommittee on Investigations, Oversight and Regulations said during a recent hearing.
The hearing, titled “The Consequences of DOL’s One-Size-Fits-All Rule for Small Businesses and Their Employees," examined DOL’s proposed rule and its potential impact on small business.
During the hearing, Rep. Hardy said the proposed rule would increase costs for small businesses and reduce flexibility for American workers.
Lawmakers heard from representatives in the restaurant, retail and homebuilding industries.
NATSO in September filed comments with DOL in response to the agency’s proposed rule. Among its comments, NATSO said that converting a large number of employees to nonexempt status will lead to unintended consequence that ultimately will harm the very employees that the Department is seeking to protect.
NATSO urged the agency to refrain from making changes to the duties test, which currently accommodates the fact that many upper level managerial and executive personnel at truckstops and travel plazas occasionally perform non-exempt duties.
NATSO further highlighted the proposal’s failure to account for regional differences in salaries. NATSO urged DOL to reflect the realities of regional economies in its final rule to ensure its desired benefits to employees without undercutting employee aspirations.
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