Proposed federal overtime pay changes could impact business environment

The National Association of Wholesaler-Distributors, Washington, D.C., has expressed opposition to the overtime proposal.
Key proposed changes include increasing the minimum salary for white-collar exemptions to the 35th percentile in the lowest region.

The U.S. Department of Labor, Washington, D.C., has proposed changes to federal overtime pay requirements, potentially impacting wholesaler-distributors and other industries, including irrigation.

Key proposed changes are:

  • increasing the minimum salary for white-collar exemptions to the 35th percentile in the lowest region, from $684/week to $1,158/week;
  • raising the Highly Compensated Employee threshold to the 85th percentile, from $107,432 to $143,980;
  • and implementing automatic updates every three years.

The National Association of Wholesaler-Distributors, Washington, D.C., has expressed opposition to the proposal.

“The proposed overtime rule will negatively impact the wholesale distribution industry, especially at a time when the economy is vulnerable and we continue to deal with pervasive inflation and the ongoing threat of a recession,” says Brian Wild, the National Association of Wholesaler-Distributors chief government relations officer. “The Department’s increase of the current minimum salary threshold by nearly 70 percent will not serve its historical gatekeeping purpose, instead it will result in reduced opportunities for employees’ professional development, diminished workplace autonomy, and less flexibility for employees.”

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