Press Releases

Knight Seeks To Delay Harmful Overtime Rule

Congressman Cosponsors Legislation To Give Small Businesses More Time To Comply With Mandate

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Washington, DC, September 23, 2016 | Daniel Outlaw (202-225-1956) | comments

Representative Steve Knight (CA-25) cosponsored a bill this week that would postpone the implementation of an impending federal mandate that would be harmful to employees and owners of small businesses and other organizations.

Earlier this year the Department of Labor (DOL) finalized a rule that would dramatically alter existing regulations on what employees must be paid overtime wages. The regulation is set to go into effect on December 1, 2016, despite pushback from small businesses, non-profits, and universities that fear that the drastic change will force them to cut wages and jobs. 

H.R. 6094, Regulatory Relief for Small Businesses, Schools, and Nonprofits Act, would delay the rule from going into effect for six months. The bipartisan legislation would buy small businesses and other entities much-needed time to prepare for the negative impacts of the DOL’s mandate.

“This drastic and abrupt change in federal overtime rules poses a major threat to our small business community in terms of compliance costs and potential pay reductions for workers,” said Knight. “This legislation would provide breathing room to those entities and employees that will be hit hardest so they may take steps to mitigate some of the negative impacts.”

Knight is a long-time skeptic of the DOL’s proposal, which he says is often cited as a major fear in his discussions with local small business owners and employees. In March, he hosted House Small Business Committee Chairman Steve Chabot for a roundtable with small business owners and non-profit operators in Simi Valley, where the potential impacts of the overtime mandate were discussed at length. In August Knight held a Small Business Conference and Expo, where again the rule was mentioned by many as a top concern.

The Regulatory Relief for Small Businesses, Schools, and Nonprofits Act, was introduced in the House on Wednesday. Knight is an original cosponsor of the measure, which is supported by a bipartisan group of over 40 legislators. The bill awaits consideration by committee. 

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