House Votes on Six-Month Delay of Federal Overtime Rule

Congress may vote to delay the implementation of the Department of Labor’s new overtime rule to June 1, 2017, seeing as nearly 50% of business owners are still unaware of the new rule.

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The House of Representatives has announced that it will soon vote on a six-month delay of the Labor Department’s new federal overtime rules, which are currently scheduled to take effect on Dec. 1, 2016. The National Retail Federation (NRF) has welcomed this announcement, and hopes that the delay will be approved.

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NRF also said it may consider votes on The Regulatory Relief for Small Businesses, Schools and Nonprofits Act as Opportunity Index Votes for its annual voting scorecard.

“The Labor Department’s move to double the overtime threshold in one fell swoop is simply too much, too fast for both employers and employees to adjust to without serious collateral damage,” senior vice president for government relations David French said. “Chairman Walberg’s commonsense legislation would give employers, non-profits and schools much-needed time to learn about and comply with the new rules before penalties kick in. Retailers support a brief pause in implementation along with all other options on the table to slow down or reverse the significant harm the Administration’s reckless changes will inflict on workplaces if they go unchecked by Congress.”

The Regulatory Relief for Small Businesses, Schools and Nonprofits Act would give employers of all types more time to implement and come into compliance with the final rule by extending the implementation deadline to June 1, 2017. A recent survey by human resources company Paychex Inc., revealed 49% of business owners polled remain unaware of the DOL’s final overtime rule.

Research conducted for NRF shows that the overtime regulations will force employers to limit hours or cut base pay in order to make up for the added payroll costs, leaving most workers with no increase in take-home pay despite added administrative costs. A separate survey found that the majority of retail managers and assistant managers the regulations are supposed to help oppose the plan.

NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the U.S. and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long careers, how retailers strengthen communities and the critical role that retail plays in driving innovation.