WASHINGTON – Last week U.S. Reps. Kurt Schrader (D-OR), Jim Cooper (D-TN), Henry Cuellar (D-TX) and Collin Peterson (D-MN) introduced legislation to phase in the Department of Labor’s new overtime rule over three years.

The new rule, proposed on May 8, raises the threshold for employees who are exempt from overtime pay from $23,660 to $47,476, and goes into effect on December 1, 2016. The Overtime Reform and Enhancement Act would incrementally phase in the new threshold of $47,476 over the next three years, beginning with a 50% increase to $35,984 this December. Each year following, the salary threshold would be raised by $74 per week until December 1, 2019, when the DOL’s proposed $47,476 threshold is reached.

“Since the DOL’s immediate phase-in date was announced, we’ve heard from business owners and their employees who are worried about implementing this increase overnight,” Schrader said.

Retail Impact of DOL’s Overtime Rule
Many convenience stores rely on overtime exemptions for managers and certain assistant managers, allowing them to avoid paying overtime rates to those employees. A dramatic increase in the salary threshold may make this difficult if not impossible to maintain, possibly resulting in much higher labor costs for stores.

NACS Supports H.R. 4773 and S. 2707, the Protecting American Workplace Advancement and Opportunity Act, which would scrap the DOL’s overtime rule and require the department to go back to the drawing board and draft a new rule that addresses the overall economic impact the changes will have.

This year at the NACS Show, attendees can learn more about the DOJ’s overtime rule during the education session taking place on October 18: “Update on the DOL Joint Employer and Overtime Regulations.” Steven Bernstein and John Thompson of Fisher Phillips will provide an update on recent regulations dealing with the joint employer standard and the federal overtime rules. Register for the NACS Show today!