Overtime Bill Would Help Business Owners and Workers

July 14, 2016

The National Association of Home Builders (NAHB) today commended Rep. Kurt Schrader (D-Ore.) for introducing legislation that helps small businesses and their workers by mitigating the effects of the U.S. Department of Labor’s unprecedented doubling of the overtime threshold.

“The nation’s home builders applaud Rep. Schrader for sponsoring this important bill that represents a balanced approach to raise the overtime threshold for workers while minimizing the impact on small businesses,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill.

This spring, the Department of Labor issued its final overtime rule that will double the current overtime salary limit of $23,660 to $47,476 on Dec. 1, 2016. NAHB and others small business leaders have warned that such a huge jump in such a short time frame could actually hurt many of the workers the rule was meant to help by forcing small business owners to scale back on pay and benefits, as well as cutting workers’ hours.

Many Republican leaders in Congress have expressed similar concerns, and this legislation is a sign of growing bipartisan momentum against the rule, said Brady.

The Overtime Reform and Enhancement Act would raise the overtime salary threshold to the Department of Labor’s $47,476 rate under the following timetable:

  • Dec 1, 2016 -- $35,984
  • Dec. 1, 2017 -- $39,814
  • Dec. 1, 2018 -- $43,645
  • Dec. 1, 2019 -- $47,476

Moreover, the legislation would eliminate a provision in the rule that requires automatic increases to the overtime salary threshold moving forward.

“The vast majority of home building firms are small businesses that employ fewer than 10 workers,” said Brady. “By gradually ramping up the overtime salary threshold, this legislation will ensure that the law remains relevant for today’s workforce. It also allows small businesses operating on tight budgets sufficient time to adjust.”