Rep. Kurt Schrader, D-Ore., recently introduced a bill that could help small businesses cope with the U.S. Department of Labor’s recent doubling of the overtime pay threshold by phasing in the increases over three years. The proposal would also remove a provision that indexes wage increases to inflation.
“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 National Association of Home Builders (NAHB) chairperson 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 December 1, 2016. NAHB says the rule change could affect at least 116,000 construction supervisors, as well as many other workers in housing and construction.
NAHB and others small business leaders have warned that such a huge pay jump in such a short time could 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.
“The vast majority of home building firms are small businesses that employ fewer than ten 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.”