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Overtime Rule Delay is Welcome, but DOL Mandate Still Threatens U.S. Innovation, says CTA

Arlington, VA – September 29, 2016 – 

The following statement is attributed to Gary Shapiro, president and CEO, Consumer Technology Association (CTA)™, regarding the House of Representatives' passage of the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act (H.R. 6094) to delay the planned Dec. 1, 2016 implementation of the Department of Labor's (DOL) new overtime eligibility requirements:

"We thank sponsor Rep. Tim Walberg (R-MI) and the House for recognizing the threat the administration's overtime eligibility exemption poses to American entrepreneurs. Although increasing the minimum exemption eligibility for white-collar employees may seem beneficial to workers, the consequences will be devastating for U.S. small businesses, startups and the people they want to hire.

"By doubling this overtime floor from $23,660 to $47,476 per year, the DOL disregards the realities of running a small business and ignores how the rule will choke U.S. innovation. Among other consequences, the law will force employers to either raise base salaries or cap workers' hours to 40 per week, costing U.S. businesses nearly $300 million a year over the first 10 years of implementation.

"This one-size-fits-all mandate leaves virtually no flexibility for startups - especially technology companies - that don't rely on a traditional timecard pay structure. Additionally, because small businesses must pay substantially more to their current employees, the rule will make it far more difficult for recent college graduates to get their first full-time jobs.

"While this short-term delay is welcome, we need a long-term solution to ensure American businesses can continue to grow, innovate and thrive. We strongly encourage the administration to rethink this massive and detrimental change and, instead, recognize how best to enable a business environment that supports innovation, creates jobs and delivers economic growth."

See CTA member Phone2Action explain how the DOL overtime mandate will damage startups, and tell the administration to rework its overtime pay rule.

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