New Overtime Rules Simplify Regulations for Small Businesses, Says SBA

8/23/2004 4:24:00 PM

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To: National Desk, Labor Reporter

Contact: Raul E. Cisneros of U.S. Small Business Administration, 202-205-7654

WASHINGTON, Aug. 23 /U.S. Newswire/ -- New overtime rules issued by the U.S. Department of Labor, going into effect today simplify regulations for small businesses.

"One of the pillars of President Bush's small business agenda is to reduce regulatory barriers for small businesses," said SBA Administrator Hector V. Barreto. "Previous rules had not been updated in decades, causing confusion and litigation for these entrepreneurs. These new rules will make it easier for small businesses to comply with overtime regulation."

The new rules guarantee overtime protections to 6.7 million workers earning $23,660 per year or less. About 1.3 million salaried white collar workers will gain up to $375 million in additional earnings per year. Another 5.4 million salaried workers will get a guarantee of overtime rights.

"With these new rules, small business employers will have more clarity should they decide to hire more employees without the fear of additional litigation," added Barreto. "Now, both employees and employers will have ironclad protections. This is very positive for small businesses in the long term."

For additional details on the new overtime rules, visit: http://www.dol.gov.

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