NRF files lawsuit against new overtime rule

The National Retail Federation filed suit in U.S. District Court on Wednesday on behalf of the millions of employers and employees who it said will be drastically affected if the Labor Department’s changes to the federal overtime rules go into effect on Dec. 1.



Retailers have argued that the new rule will force employers to reduce hours and base pay in order to make up for increased payroll costs.



“The Labor Department’s extreme and reckless changes to the overtime rules will hobble the career paths of millions of Americans trying to climb the professional ladder,” said NRF senior VP for government relations David French. “Retailers are already struggling to implement this new government mandate before the swiftly approaching deadline, and the automatic update included in the rule would make them do this same dance every three years for as long as they are able to remain in business. This is a massive government overreach of executive authority, and the courts need to put a stop to it.”



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.