WASHINGTON – The National Retail Federation today issued the following statement from Executive Vice President of Government Relations David French after the U.S. District Court in the Eastern District of Texas struck down the Department of Labor’s (DOL) final overtime rule. Finalized in April 2024, the rule would have increased the minimum annual salary threshold that determines overtime pay eligibility under the Fair Labor Standards Act.
“NRF appreciates the Court concurring with our arguments that the Labor Department exceeded its legal authority in promulgating rules clearly inconsistent with the Fair Labor Standards Act. The rules, if finalized, would have curtailed retailers’ ability to offer the most flexible, generous and tailored benefits packages to lower-level exempt employees across the industry.
“NRF opposed these rules from the outset. They would have forced employers to reexamine compensation packages for millions of workers nationwide. Had the rule taken effect, some workers would have lost the status of a managerial position, valuable educational and training experiences, the capability to travel on the employer’s behalf, and/or flexibility as to when, how and where they work.”
In November 2023, NRF submitted comments to DOL opposing its proposed rule on overtime regulation. Additionally, NRF commissioned Oxford Economics to analyze the economic effects if implemented, which found that the proposed rule could impact more than 7.2 million workers.
As the leading authority and voice for retail, NRF will continue to advocate for workplace rules that promote workplace flexibility and economic growth.
About NRF
The National Retail Federation passionately advocates for the people, brands, policies and ideas that help retail succeed. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation’s largest private-sector employer, contributing $5.3 trillion to annual GDP and supporting more than one in four U.S. jobs — 55 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies. nrf.com