The National Grocers Association (NGA) is not pleased with the a proposed rule—set to be published Thursday by the U.S. Department of Labor (DOL)—that raises the salary threshold in which a worker is qualified for overtime pay.
The change to the overtime pay law dramatically expands the number of people who will qualify for increased pay after working more than 40 hours in a week. It will raise the threshold for guaranteed overtime pay from a salary of $23,660 to $50,440. The rule change aims to improve wages for nearly five million people as early as 2016, according to reports.
“As an industry that creates over 900,000 jobs, independent supermarket operators play a vital role in the U.S. economy and the communities they serve,” said NGA President and CEO Peter J. Larkin. “NGA members are proud to be an employer of choice in their communities, offering stable, reliable jobs and opportunities for career advancement. Unfortunately, the proposed rule…creates new barriers, potentially forcing employers to reclassify thousands of salaried workers back to hourly non-management positions, likely also impacting employee benefits and flexibility.
“NGA will continue to challenge regulations…that disproportionately affect the independent supermarket industry,” he added. “We look forward to working with the Administration and Congress to put forth solutions that encourage independent supermarket operators to grow and expand their businesses, and ultimately their workforce.”