Sep 29, 2016

Congress delays new law that requires expanded overtime threshold

The National Retail Federation praised the Sept. 28 House passage of legislation that would delay the Labor Department’s expansion of overtime rules for six months. Prior to the vote, NRF told lawmakers in a letter that action on the legislation would be included in its annual voting scorecard.

“Lawmakers from both parties recognize that the administration’s radical changes to overtime rules are too much, too fast,” NRF Senior Vice President for Government Relations David French said. “With the Dec. 1 compliance deadline looming, the window for congressional action is quickly closing. Pushing pause on implementing these one-size-fits-all regulations would provide welcome breathing room for retailers large and small struggling to comply with the changes during the holidays, their busiest time of the year. We urge the Senate to help millions of employers and employees by stepping in to help fix or delay the overtime rules.”

The Regulatory Relief for Small Businesses, Schools, and Nonprofits Act approved today would give employers an extra six months to come into compliance with new overtime rules that are set to take effect Dec. 1 by pushing the deadline to June 1, 2017.

The new regulations will require employers to pay overtime to most workers who make up to $47,476 per year when they work more than 40 hours a week, more than double the current threshold of $23,660. Despite the dramatic increase, a recent survey by human resources company Paychex Inc. found that 49 percent of business owners polled were unaware of the change.

Research conducted for NRF shows that the regulations will force employers to limit hours or cut base pay in order to make up for added payroll costs, leaving most workers with no increase in take-home pay despite added administrative costs. A separate survey found that the majority of retail managers and assistant managers the regulations are supposed to help oppose the plan.

For more on the law, visit http://www.dol.gov