Small business owners breathe easier over labor costs after overtime rule struck down

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Labor News

Compensation And Benefits,Business,Small Business

Small business owners have had a mostly positive reaction to a judge’s decision to strike down an overtime rule that would have qualified more workers for overtime pay

FILE - In this May 7, 2020, photo, the entrance to the Labor Department is seen near the Capitol in Washington. s a nation ravaged by the coronavirus pandemic, the economic devastation upending the presidential campaign and forcing President Donald Trump to overcome historic headwinds to win a second term. that would have expanded access to overtime pay to millions more salaried workers across the U.S. Nearly all hourly workers in the U.S. are entitled to overtime pay after 40 hours a week.

Guillaume Drew, founder of Or & Zon, a New York company that sells sustainable home goods online with 12 staffers, said overturning the rule helps him keep labor costs and prices of goods down, particularly for future employees, since none of his current staffers would have been affected. But he said it's still important employees are paid fairly for their time and effort.

Sheldon Sutherland, owner of Epoxy Werx, a San Diego-based business with 12 employees specializing in epoxy flooring, said the ruling is positive for his company. Small Business & Entrepreneurship Council president & CEO Karen Kerrigan added that the ruling will help struggling small business owners.

 

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