DOL’s Proposed Changes to Overtime Pay Will Impact Retail Industry
Possibly impacting employers in the retail industry, the U.S. Department of Labor (“DOL”) has proposed changes to overtime pay rules under the Fair Labor Standards Act (FLSA). Announced earlier this month, the DOL is proposing setting the minimum salary threshold at the 40th percentile of weekly wages for full-time salaried workers based upon Bureau of Labor Statistics data. The DOL also proposes publishing the minimum salary 60 days before going into effect, and is considering whether nondiscretionary bonuses will be allowed to fulfill a portion of the FLSA’s standard salary test requirement. If approved, the FLSA’s final overtime rules could be implemented next year.
Further information on the DOL’s proposals is available in the July edition of Cherry Bekaert Benefits Consulting’s Compensation & Human Capital Consulting Update.