Reports that the government is planning to cut the salary threshold for overtime eligibility from $50,440 to $47,000 is not enough, the National Association of Home Builders said.
“This drastic hike would still wreak havoc on the residential housing sector, the nation's small businesses and the economy,” NAHB Chairman Ed Brady said in a statement. “This minimal reduction would still amount to a 99 percent increase from the current overtime salary limit of $23,660. This proposal is clearly not serious and is unacceptable to America's small businesses.
"The unintended consequences of this aggressive regulatory overreach would hurt job and economic growth, as well as many of the workers the plan is trying to help. There is no reasonable approach or road map on how this would be phased in without resulting in severe economic repercussions. If the $47,000 overtime threshold were to become law, it would hurt millions of small business owners, including home building firms, by forcing them to scale back on pay and benefits, as well as cutting workers' hours to avoid overtime requirements. Indeed, it would be particularly harmful to the housing community, as the vast majority of home building firms have fewer than 10 employees.
"The Department of Labor must scrap this unworkable proposal and go back to the drawing board.”