Overtime Regulations

Last Updated: April 25, 2024

The Issue

The Biden Administration released its updated Overtime rule which makes dramatic changes to the salary thresholds under which all salaried employees must be paid overtime wages.  Under the new rule, on July 1, 2024, anyone making less than $844 per week ($43,888 per year) will be required to be paid overtime pay for any hours worked beyond 40 in a given week.  On January 1, 2025, that threshold will increase to $1,128 per week ($58,656 per year.)  Moving forward the threshold is set to be automatically adjusted, using the new methodology every 3-years.

Retail Impact

Labor costs are the highest single operating expense for convenience stores. It is appropriate for the government to review and, if necessary, adjust the overtime salary threshold, so it remains relevant in the current marketplace. Unfortunately, with this rule the DOL completely upends that process by changing the methodology which is inappropriate for various parts of the country and removes the appropriate review process by automatically adjusting without the proper notice & comment process.

NACS Position

NACS opposes this current overtime rule. The DOL Ignored decades of precedent in changing the methodology by which they calculate this threshold.  DOL should withdraw this rule and reissue one using the prior, more appropriate methodology.  NACS also believes the automatic adjustment is inappropriate.  The salary threshold should be reviewed on a regular basis to ensure it is still meeting its statutory purpose but any changes must be subject to the normal rulemaking process including notice & comment.