On Dec 1, 2016, the new overtime rules will take effect making millions of Americans eligible for overtime pay. With the date fast approaching, the National Federation of Independent Business (NFIB) is asking the government to delay the rule until June 1, 2017.
Why the need for a delay you ask? Juanita Duggan, president of the National Federation of Independent Business says that “In many cases, small businesses must reorganize their work forces and implement new systems for tracking hours, record keeping, and reporting, They can’t just flip a switch and be in compliance.”
David Well, administrator of Labor’s wage isn’t buying it. Wells indicated that businesses were provided 190 days to comply with the new rule which is more than triple the amount of time given to comply with a federal order. The NFIB contends that with the number of businesses being affected (about 2.4 million) cannot meet compliance requirements in 3 months. In considering every option, the NFIB has also supported a recent Rep. Kurt Schrader, D-Ore bill that will allow businesses to implement a new salary threshold over a three year span.
A lack of time and overall knowledge of the tax rule is the NFIB’s best argument for delay. The next few months will be interesting, but whether a delay is enacted or not, small businesses will feel the brunt of the government’s new rule in 2017.