As we’ve reported before, NAW was a plaintiff in the lawsuit that resulted in the overturning of the Obama Wage and Hour Division’s rule radically changing the Fair Labor Standards Act’s “white collar” overtime exemption.  The Trump Administration initially issued a “request for information” (RFI) on the issue – NAW responded to that RFI – preparatory to proposing a new rule. 

After months of delays, the Trump Labor Department on Friday, March 8 finally released a new Notice of Proposed Rulemaking (NPRM) on a new overtime rule.  Their rule will formally rescind the Obama rule, a step necessary to ensure that there could be no retro-active enforcement of that rule.   

While we are just beginning to review the new NPRM, a few details are notable.  First, they are proposing a threshold salary for qualifying for the “white collar exemption” of $35,308 – significantly lower than the $47,000 proposed in the Obama rule.  Also, they do not propose automatic increases in that salary threshold without any rulemaking or public comment, as the 2015 rule did. 

NAW has filed comments multiple times on this issue, based on the invaluable input we received from member companies on how the proposed rules would impact them.  We will review this new rule, and again reach out to our member companies to better understand how each of the provisions in the new rule will impact them. 

Click here to review the new NPRM. 

Labor – National Labor Relations Board (NLRB):  Sometimes having something NOT happen is a successful outcome of an advocacy effort, and that is the case with a recent NLRB issue.  Former Obama Board Chairman Mark Pearce’s term on the Board expired last year, and there was a concerted effort on the part of organized labor to get him re-appointed to fill the vacancy.  Because Pearce was by far the most aggressive player in moving a pro-union, anti-business agenda during his tenure on the Board, the business community was united in opposition to having him reappointed.  That united business opposition prevailed and, in a major victory for business, Pearce withdrew his name from consideration for the Board seat.  The business community remains active and is continuing to meet with officials at the White House and the Senate to discuss when and with whom to fill the existing and upcoming Board vacancies.  - (National Association of Wholesaler-Distributors)