The National Sporting Goods Association (NSGA) issued a reminder for its members to be aware of a significant new rule unveiled by the Obama Administration through the Department of Labor (DOL).
“This is a change that will have a negative impact on virtually every retailer and team dealer,” the NSGA said.
The proposed rule, which would take effect on December 1, 2016, would more than double the salary level for exemption from overtime rules, to $47,476. For the first time, the Labor Department will index future salary thresholds to inflation. Every three years, the threshold will rise to the 40th wage percentile for full-time salaried workers in the country’s lowest-wage region, currently the Southeast.
Current law allows the Secretary of Labor to establish rules to enforce the Fair Labor Standards Act (FLSA). As a result, this is not a legislative issue, and the rules can be changed “administratively.” Currently, the standard salary level required for exemption from overtime rules is $455 per week, or $23,660 for a full year worker. It was last updated in 2004.
