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The House Small Business Committee considered potential negative consequences from the Labor Department's recently revised overtime rule requirements during a hearing Thursday.

Several witnesses agreed that the rule has too much of a "one size fits all" approach that is inappropriate for small businesses. In particular, Hireology CEO Adam Robinson, who testified on behalf of the Job Creators Network, said small businesses have small margins and won't be able to comply with the rule without making cuts elsewhere.

Committee Chairman Steve Chabot, R-Ohio, said the rule could have a negative impact on employee morale because of a resulting lack of flexibility and some employees being changed from salaried to hourly positions.

In a letter included in the hearing record, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt on Wednesday urged committee leaders to support legislation that would provide credit unions relief from the requirements.

Hunt emphasized that NAFCU supports fair wages, but she noted that the overtime rule changes are happening too fast and without enough consideration for not-for-profits like credit unions. Hunt urged the committee's support of H.R. 4772, the "Protecting Workplace Advancement and Opportunity Act," which would provide regulatory relief for credit unions from the negative impact of the rule.

Hunt also noted NAFCU's concern that the rule does not adequately consider geographic salary differences, making the rule disproportionately burdensome for credit unions in underserved and non-urban communities.