States, Businesses File Lawsuit Against New Overtime Rules

Total Retail's Take: Under the new overtime law, workers who make a salary of less than $47,476 a year will qualify for overtime pay, regardless of duties. However, some believe that instead of increasing salaries to raise workers above the overtime threshold, businesses will reclassify workers as hourly. This would remove existing benefits and flexibility and, in turn, lower morale and the customer experience because training may be hindered or managers may have to put their efforts into other tasks. The overtime law is one that retailers are following closely, as it figures to significantly impact their store associates.