Wal-Mart is giving its managers pay raises ahead of the new federal overtime wage mandate. The retailer raised the starting salary for various managers from $45,000 to $48,500 at the start of September. The Department of Labor rule, set to go into effect on Dec. 1, raises the top salary threshold under which executive, administrative and professional workers must be paid overtime. Currently, the threshold is $23,660; that will go up to $47,476 once the regulation kicks in.
Total Retail’s Take: Wal-Mart is being proactive by raising its store managers’ salaries. Getting this done before the new Department of Labor overtime law goes into effect in December will allow Wal-Mart to concentrate on profits during the crazy-busy holiday season — and potentially save some cash in the long run, despite the initial investment. Will other retailers follow in Wal-Mart’s footsteps?