GCCA, along with industry partners recently sent a letter asking the Department of Labor (DOL) to withdraw its proposed changes to the “white collar” federal overtime pay rule.  The letter argues that the proposed change has been rushed through the rulemaking process, and is based on outdated studies, and outdated practices.  The rule seeks to increase the minimum salary threshold by about 70%, from $684/week ($35,568 annually) to $1158/week ($60,209 annually).  The DOL has only given 60 days for comment on the rule, and only 60 days to comply after the final rule is published.  The rule would automatically update the minimum requirement every three years.  There are concerns that the rule could ultimately have negative impacts on the workers it seeks to protect.  Employees may face limits on career advancement, reductions to benefits including incentive pay, reassignment, or being let go.  Employers will be forced to take on a burdensome amount of excess costs related to legal, administrative, and operational changes they will have to make on short notice to abide by the DOL rule change.  For these reasons, GCCA and industry partners are urging the DOL to withdraw the proposal.

Published Date

October 31, 2023

Topic

Advocacy, Cold Chain Development, Supply Chain Operations, Transportation & Logistics

Region

United States

Sector

Controlled Environment Building, GCCA Transportation, GCCA Warehouse