New Overtime Rule Raises Threshold to More than $47,000

CONTACT:
Katie Nemec, Director of Marketing and Communications
(800) 815-5422, ext. 1070
knemec@nsga.org

Larry Weindruch, Director of Public Affairs
(800) 815-5422, ext. 1290
lweindruch@nsga.org

New Overtime Rule Raises Threshold to More than $47,000

MOUNT PROSPECT, ILLINOIS (May 18, 2016) – The National Sporting Goods Association (NSGA) wants its members to be aware of a significant new rule unveiled today 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.

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.

The proposed rule, which takes 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.

During the comment period last fall, NSGA submitted written testimony objecting to this change, and in fact, more than 293,000 comments were sent to the Department of Labor regarding this proposal.

“This new rule will have a serious negative impact on employers,” NSGA President & CEO Matt Carlson said. “We want our members to be prepared for this new rule and have plans in place to adapt to these changes by the December 1 implementation date.

“We ask our members to alert their human resources directors to send us their contact information, so that we may be able to provide updates as they become available,” Carlson added.

Here are links to two government-provided documents, a fact sheet and frequently asked questions:

Fact sheet: http://1.usa.gov/1OEUfUV
FAQs: http://1.usa.gov/1TmEOB1

About NSGA

The National Sporting Goods Association has served as the leading voice for the sporting goods industry since 1929. NSGA’s mission is to support its members’ efforts to grow their business and to advocate on their behalf. The Association develops industry research and publications, while also providing discounted services and hosting the annual NSGA Management Conference & Team Dealer Summit. For more information about membership or NSGA’s products and services, please visit www.nsga.org.

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