The National Association of Wholesaler-Distributors says it wants the Department of Labor to withdraw a proposed rule that would guarantee overtime pay for most salaried workers earning less than $1,059 per week, or about $55,000 per year.
If approved, the proposed rule — listed as “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees” — would be a considerable increase from the current guaranteed overtime pay salary threshold of $35,568 per year set by the Trump administration in 2019. The new rule also would surpass the $47,476 mark proposed by the Obama administration in 2016.
NAW voiced its opposition to the proposal in August. On Nov. 7, the organization released another statement, this time from NAW Chief Government Relations Officer Brian Wild:
“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. 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.”
The department’s proposal would raise the total annual compensation requirement for highly compensated employees to $143,988. The rule also would include an automatic update provision for future overtime thresholds beyond what is included in the proposal and would not adjust the Wages and Fair Labor Standards Act’s (FLSA) “duties test” for determining overtime eligibility.