PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

SBE Council Statement on DOL’s Final Overtime Rule

By at 23 April, 2024, 4:45 pm

NEWS

For Immediate Release

Washington, D.C. – Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan issued the following statement in response to the final Overtime Rule issued today by the U.S. Department of Labor (DOL):

“Dol’s final overtime rule is not a welcome development for American small businesses. The outcome will not be favorable for their workers. The intrusive rule will increase the minimum salary threshold in two stages ultimately boosting it to $58,656 on January 1, 2025. That is more than a 60% hike over the current threshold of $35,568. The first increase to $43,888 is scheduled for July 1, 2024. In addition, the rule implements automatic updates to both the minimum salary and highly compensated employee thresholds every 3 years.

“The rule significantly raises costs for small businesses, disrupts the effective compensation and incentive models they use, and pushes more employees into hourly non-exempt jobs, which means less flexibility, and fewer benefits and career growth opportunities. Combined, the effects of the rule will make small businesses less competitive and less able to withstand ongoing challenges.  Complying with the new rule will be a complex headache for small businesses. Again. the rule is not a good deal for workers. SBE Council looks forward to working with our allies in Congress and the business community to find ways to minimize the pain of the new rule and push back on elements that are not statutorily grounded.”

CONTACT:

Karen Kerrigan, kkerrigan@sbecouncil.org

SBE Council is a nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For nearly 30 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth.

Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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