Walberg Introduces Bipartisan Legislation to Delay Overtime Rule, Protect Michigan Workers, Students, and Small Businesses

Washington, D.C.—Congressman Tim Walberg (MI-07) yesterday introduced the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act (H.R. 6094), bipartisan legislation to require a six-month delay in the effective date of the Department of Labor's new overtime rule. Without congressional action, on December 1, 2016, drastic changes to federal overtime policies will take effect, resulting in harmful consequences for Michigan workers, small businesses, nonprofit organizations, and colleges and universities.

"Small businesses, nonprofits, and colleges and universities nationwide have urged the administration to take a more responsible approach to updating our nation's overtime rules," said Congressman Walberg. "There is agreement that federal overtime rules need to be updated, and we've been working in a bipartisan fashion to find a reasonable consensus to modernize these rules. Unfortunately, the administration has refused to listen and too many hardworking people impacted by the rule are now struggling to prepare for drastic changes in just a few short months. The administration should go back to the drawing board altogether, but at the very least, it should work with us to delay the rule and provide much-needed relief."

"One of the great rewards of owning a small business is creating opportunities for young people in our community to learn the value of hard work and help our team members pursue an education," said Karen Richard, owner of Culver's Restaurants in Ann Arbor and Jackson. "I am worried the new overtime rule will dramatically limit opportunities for the young people I employ to grow, advance in the workplace, and gain managerial experience. Delaying it would be a welcome development for small business owners and our employees."

"Absorbing the additional costs resulting from the new overtime rule presents a tremendous challenge for institutions of higher education across the country, including Adrian College," said Jeffrey Docking, President of Adrian College. "From the cost of tuition to provided services, this rule will have far-reaching implications for our students, employees, and community as a whole. Additionally, we are concerned with the limited time frame to implement such a sweeping change to administrative policy and encourage any efforts to delay the rule's harmful consequences."

"The Overtime Rule has not even gone into effect yet, and I have already opted to hire one less employee this year. I am a classic example of how this rule is going to cost Michigan, and the entire country, jobs," said Ernie MacEwen, small business owner in South Rockwood. "This rule was incredibly under publicized, and I have talked to many small business owners who don't even know that it exists. If the looming December 1st deadline stands, many owners will be in violation of the rule and will face expensive fines."

"On behalf of Bethany Christian Services, we are pleased to support the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act," said Bill Blacquiere, President of Bethany Christian Services in Grand Rapids. "We appreciate Rep. Walberg's efforts to delay the Department of Labor's new overtime rule that would make drastic changes to federal overtime policies. As an organization that is committed to family preservation, foster care, adoption, and child welfare, we are very aware that extreme changes to overtime rules can have a deleterious effect on our workplace flexibility and ability to perform services for children. We encourage Congress and the Administration to adopt modernized overtime rules that help non-profits like ours work most effectively on behalf of those most in need."

Congressman Walberg serves on the House Education and the Workforce Committee as Chair of the Workforce Protections Subcommittee. In addition, he serves on the House Oversight and Government Reform Committee. For more information on Walberg's work in Congress visit walberg.house.gov.