Research from the NRF has revealed that the new overtime rule will not lead to more take-home pay for workers, despite its intention.
The Labor Department recently introduced a new overtime rule, and although this rule theoretically should benefit both businesses and their employees, the true effects that this new rule will likely have on both businesses and workers could be more harmful than helpful.
The National Retail Federation released the following statement on the hearing by the House Education and Workforce Committee on the Labor Department’s new overtime rule.
“Retailers are happy to see that our allies in Congress aren’t taking their foot off the gas when it comes to trying to stop DOL’s reckless overtime rules from going into effect,” NRF’s senior vice president for government relations David French said. “Under the leadership of Senator Alexander, 44 senators went on record earlier this week in opposing this rule, which the senator rightly observed would be better named the timecard rule or the higher tuition rule for its real-world impact on the American people.”
“Today, members of the House Education and Workforce Committee will hear from human resource officers from a university in Kansas and a nonprofit in New Hampshire about how this rule will harm their organizations and the people they serve. While supporters of the rule have offered up a think-tank philosopher to argue why further regulation of the workforce will supposedly benefit everyone.
“Retailers large and small agree with nonprofit organizations, higher education institutions, municipal and county governments and other employers overtime eligibility will not suddenly lead to overtime pay. Instead, by direction of the Labor Department, we will be forced align our workforce to limit overtime pay in ways that undermine career opportunities and better futures for both retail associates and retail companies.”
Research conducted for NRF shows that the rule 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 U.S. 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.