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SBE Council opposes Obama's overtime proposal

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The Small Business & Entrepreneurship Council (SBE Council) put out a statement yesterday on Obama's latest control regulation on the standards for overtime pay. They expressed their worry on the new cost that would be imposed on businesses, especially small businesses, and the effects it would have on our already weaken economy. SBE Council President & CEO Karen Kerrigan stated “Obama's latest labor edict is creating a “pile on” effect of careless economic policies that are driving a stake through heart of small business America.”

The Department of Labor, under the Fair Labor Standards Act, protects over 135 million workers in more than 7.3 million workplaces nationwide. Obama instructed the Secretary of Labor to improve overtime regulation in three way:

  • Address the changing nature of the American workplace.
  • Update existing protections in keeping with the intention of the Fair Labor Standards Act.
  • Simplify the overtime rules to make them easier for both workers and businesses to understand and apply.

American citizens and businesses have been hit hard with tax increases at both state and federal levels, as well as local levels. In many cases tax increases were due to bad policies, failure to enforce rules on the books and overspending, with no relief in sight for citizens or businesses. Obama's latest proposal of changing the rules on overtime pay and his desire to have minimum raised to $10 a hour could further hurt the middle class worker at this time more than help them; as it has been warned that employers would more then likely cut pay and/or workers.

SBE Council President & CEO Kerrigan stated, “Entrepreneurs and businesses have struggled to invest, expand and create jobs due to excessive taxation and over-regulation during Obama’s presidency and the fragile economy. Undeterred by a weak economic recovery and low business confidence,... This latest regulatory escapade to impose new costs via more stringent overtime rules will only make matters worse.”



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