National Retail Federation on DOL’s overtime rules: hundreds of thousands of career professionals will lose their status as salaried employees

Retailers Appeal to Congress to Block Overtime Expansion

WASHINGTON, 2016-May-20 — /EPR Retail News/ — The National Retail Federation today released the following statement from Senior Vice President for Government Relations David French in response to the Department of Labor’s new overtime rules:

“These rules are a career killer. With the stroke of a pen, the Labor Department is demoting millions of workers. In the retail sector alone, hundreds of thousands of career professionals will lose their status as salaried employees and find themselves reclassified as hourly workers, depriving them of the workplace flexibility and other benefits they so highly-value. And the one-size-fits-all approach means businesses trying to make ends meet in small towns across America are now expected to pay the same salaries as those in New York City.”

“These regulations are full of false promises. Most of the people impacted by this change will not see any additional pay. Instead, this sudden and extraordinary increase will mean more red tape and fewer advancement opportunities for salaried professionals. In the real world – as opposed to D.C. conference rooms filled with career bureaucrats and political appointees – employers and employees will suffer the consequences of a policy rooted in pure politics.

“Of course, the devil is in the details, but this fight is far from over. NRF will continue to advocate alongside our congressional allies for realistic workplace policies. Overtime regulations need to be sensitive to cost-of-living differences throughout the country, moderate enough that they don’t block the career ambitions of young people and middle managers working to climb the career ladder, and gradual enough that business owners can implement them without penalizing the very people they were intended to help.”

Research conducted for NRF shows that the rules will force employers to limit hours or cut base pay in order to make up for the added payroll costs of overtime expansion, 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 new regulations are supposed to help oppose the plan.

NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long careers, how retailers strengthen communities, and the critical role that retail plays in driving innovation. nrf.com

Robin Roberts
press@nrf.com
(855) NRF-Press