NRF: Overtime Expansion Will Lead to Demotions

By Melissa Campanelli

The National Retail Federation (NRF) told the House Small Business Committee last week that new federal overtime regulations will lead to hiring freezes and layoffs for full-time workers if enacted as planned Dec. 1. The NRF urged committee members to support the Protecting Workplace Advancement and Opportunity Act, which would pause implementation of the new regulations and require the Labor Department to complete a comprehensive analysis of the impact the changes would have on small businesses and lower-wage regions of the country.

Total Retail’s Take: The NRF is on to something. Research conducted for NRF shows that the overtime regulations will force employers to limit hours or cut base pay in order to make up for the added payroll costs, 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 regulations are supposed to help oppose the plan. We’ll be tracking this issue closely, so stay tuned.

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Melissa Campanelli Author's page Melissa Campanelli is Editor-in-Chief of Total Retail. She is an industry veteran, having covered all aspects of retail, tech, digital, e-commerce, and marketing over the past 20 years. Melissa is also the co-founder of the Women in Retail Leadership Circle.