Following President Obama’s order to “modernize and streamline” federal overtime rules, the Labor Department has proposed regulations that would greatly expand the number of workers covered by overtime. This is a bad deal for both retailers and retail employees. A study conducted by Oxford Economics found that expanded overtime would drive up retailers’ payroll costs while limiting opportunities to move up into management. Given the tight economy, many employers would limit hours or reduce base pay to compensate, meaning most workers would be unlikely to see an increase in take-home pay, the study said. In addition, the use of part-time workers to cover extra hours could increase, and retailers operating in rural states could see a disproportionate impact. Learn more at: https://nrf.com/advocacy/policy-agenda/overtime

1. 10 Ways DOL’s Flawed
Overtime Proposal
Hurts Employees

2. nrf.com/overtime
10 WAYS DOL’S FLAWED OVERTIME PROPOSAL HURTS EMPLOYEES
#1 Less
workplace
flexibility
Source: 694,500 more retail and restaurant employees would be subject to time clocks and burdensome tracking of hours.
(Oxford Economics)

3. nrf.com/overtime
10 WAYS DOL’S FLAWED OVERTIME PROPOSAL HURTS EMPLOYEES
#2 Reduced
bonuses and
benefits
Source: 104,400 retail and restaurant workers would have bonuses and benefits cut to offset equivalent increases in their
base salaries. (Oxford Economics)

4. nrf.com/overtime
10 WAYS DOL’S FLAWED OVERTIME PROPOSAL HURTS EMPLOYEES
#3 Less income
stability when
converted from
salaried to hourly
status
Source: Loss of $2.32 billion in earnings for retail and restaurant management/supervisory workers. (Oxford Economics)

5. nrf.com/overtime
10 WAYS DOL’S FLAWED OVERTIME PROPOSAL HURTS EMPLOYEES
#4 Fewer career
advancement
opportunities
Source: Oxford Economics predicts that the proposal would result in changes that would lead to more part-time workers,
more inequality in the workplace, and fewer hours for full-time workers.

6. nrf.com/overtime
10 WAYS DOL’S FLAWED OVERTIME PROPOSAL HURTS EMPLOYEES
#5 Fewer training and
professional
development
opportunities
Source: However, it is likely companies would increase their reliance on technology and automation in the workplace, which
would allow fewer managers to exert greater control. (Oxford Economics)

7. nrf.com/overtime
10 WAYS DOL’S FLAWED OVERTIME PROPOSAL HURTS EMPLOYEES
#6 Fewer
opportunities to
demonstrate
leadership
Source: 28% of retail and restaurant managers believe a change to hourly status would lead to fewer opportunities to
demonstrate leadership in their workplace.

8. nrf.com/overtime
10 WAYS DOL’S FLAWED OVERTIME PROPOSAL HURTS EMPLOYEES
#7 Reduced hours
for some affected
employees
Source: 231,500 workers would be converted from exempt salaried to non-exempt hourly and have their hours reduced to
38 hours per week. (Oxford Economics)

9. nrf.com/overtime
10 WAYS DOL’S FLAWED OVERTIME PROPOSAL HURTS EMPLOYEES
#8
Reduced job
satisfaction
Source: 45% of retail and restaurant managers believe a change to hourly status would leave them feeling as though they
are performing a job instead of pursuing a career. (GfK)

10. nrf.com/overtime
10 WAYS DOL’S FLAWED OVERTIME PROPOSAL HURTS EMPLOYEES
#9 Less
career
stability
Source: 33% of retail and restaurant managers believe a change to hourly status would undermine career stability. (GfK)

11. nrf.com/overtime
10 WAYS DOL’S FLAWED OVERTIME PROPOSAL HURTS EMPLOYEES
#10 Reduced
employee
morale
Source: 66% of retail and restaurant managers believe employee morale would decrease if the primary duties test is
changed. (GfK)

12. Learn more at:
nrf.com/overtime