September 29, 2016

National Restaurant Association applauds Senate bill to delay, update DOL overtime rule

Washington, D.C. -- Today the National Restaurant Association issued a statement of support for the Senate Introduction of the Regulatory Relief for Small Businesses, Schools and Nonprofits Act and the Overtime Reform and Review Act. These bills would offer a six month delay of the December 1 implementation deadline and make much-needed modifications to the Department of Labor’s new overtime regulation.

“As the December 1 deadline nears, we thank Chairman Alexander and Senators Lankford, Scott, Flake and Collins for their leadership in introducing this critical legislation. Delaying the implementation date, allowing for a more gradual phase-in period, eliminating automatic indexing and carefully studying the impact this rule will have is crucial for small businesses navigating yet another burdensome regulation.”

Currently, the Department of Labor’s overtime rule more than doubles the salary threshold for non-exempt employees with automatic increases every three years.  The Overtime Reform and Review Act would phase-in the threshold increase over a 5 year period with a “pause year” after the first year to provide an opportunity for agencies to assess the impact and allow exemption for certain entities from further increases based on the assessment, and prohibit automatic indexing.  The Regulatory Relief for Small Businesses, Schools and Nonprofits Act would provide a six month delay in implementation.

The Department of Labor’s updated federal overtime regulation takes effect Dec. 1, 2016. The National Restaurant Association has been working closely with members of Congress to find solutions for our membership as they navigate this rule. With the passage of H.R. 6094 in the House and the introduction of legislation in the Senate, the Association is asking the Senate and the Administration to listen to the concerns of small businesses and act quickly.