Small Business Reaction to New Labor Department Overtime Rule

Thursday, May 19, 2016
CONTACT:  Kristofer Eisenla, LUNA+EISENLA media | 202-670-5747 (mobile)

Ruling Will Reduce Small Business Growth, Employee Flexibility & Opportunity

 – The National Association for the Self-Employed (NASE), the nation’s leading advocate and resource for self-employed and micro-businesses, today released the following statement in reaction to new overtime rules from the Department of Labor by expressing “deep concern the rule will hurt small business growth and employees in the long-run”:

“The Department of Labor’s ruling will make it more difficult for millions of small business owners across America to help strengthen and support our local and national economies,” said Katie Vlietstra, Vice President for Government Relations and Public Affairs. “This new overtime rule will increase costs for our nation’s small business community who are already facing a host of unfair business regulations and add to the struggle they face to meet their bottom lines. As a result of this rule, employee flexibility will be reduced, growth opportunities squandered and small business expansion stalled. Businesses will be forced to cut vital programs, staffing and services that benefit American workers.

“We urge the U.S. Congress to support the Protecting Workplace Advancement and Opportunity Act and stand up for the American small business community. What is needed is a more appropriate salary threshold that takes into account regional cost-of-living differences, not further regulations that dictate harmful business practices.”

On Wednesday, the Labor Department announced its final overtime rule, which increases the salary threshold for overtime eligibility by 100% to $47,476.


The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE Small Business Locator helps identify and connect our nation’s smallest businesses. In addition, NASE’s new health care portal helps small business owners navigate the nation’s health care marketplace. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at

1 Comment

  1. 1 Vicky 25 May
    It is encouraging to have voices such as this support small businesses, many of which are already stretched to the limit trying to keep people employed and paid a fair wage. If the overtime rule remains in force then in the private Home Heath Care business it is the elderly, frail and infirm who will suffer because the HHA's will be forced to increase the rates they charge. Many elderly and disabled rely on 24 hour live-in care to provide them with consistent, quality care. That type of care could possibly be eliminated due to the horrific wages that would need to be paid staff; unnecessary increases because the wages paid currently are more than fair.

    There are industries and job situations that may need such an overtime ruling I'm sure. But it cannot be a blanket ruling because it will harm the very people my company benefits. The Homecare industry operates a bit differently then a regular 9-5 job. It cannot bear the increases that government continues to impose on small businesses and continue to provide affordable care to the elderly, frail, and disabled who pay privately for care.  

    I ask that our law makers consider who will ultimately be affected by their supposedly equitable rulings. 


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