Small business owners breathe easier over labor costs after decision to strike down overtime rule

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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.

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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.

“As a small business, managing labor costs is critical, and the proposed change would have increased expenses significantly,” he said. “The decision allows us to maintain current pay structures, ensuring financial stability while continuing to offer competitive wages.

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