Small business, Sales and marketing

New Overtime Salary Rule: NFIB Backs Six-Month Delay


A House of Representatives Bill, backed by the National Federation of Independent Business, aims to give entrepreneurs and business owners more time to prepare for new overtime rules that can potentially impact payroll, cash flow and profit margins.

As ChannelE2E has previously reported: Under a rule set to activate on December 1, 2016, salaried employees earning less than $47,476 annually ($913 per week) will be entitled to time-and-a-half pay for work that exceeds 40 hours per week. The current salary cutoff for overtime pay is $23,660 ($455 per week). Many MSPs and VARs are preparing now to deal with the new rule -- and the potential impact on payroll, profit margins and more.

Still, the NFIB -- an organization that represents small business owners -- is trying to rally entrepreneurs to support H.R. 6094. The House of Representatives bill, if approved, would delay the new overtime rules until June 1, 2017.

According to an NFIB statement:

"This additional six months of time beyond the original implementation date will give small businesses much needed time to comply with overtime changes. The current December 1, 2016 deadline is not enough time to come into compliance with a rule that more than doubles the salary threshold and harms 44% of all small businesses."

ChannelE2E will track the bill's status in the days and weeks ahead.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.