National Grocers Association Supports Nullification of Overtime Rule
The National Grocers Association (NGA) has welcomed the decision by the U.S. District Court for the Eastern District of Texas to invalidate the Department of Labor’s 2024 overtime final rule.
“The court’s decision restores a more balanced and practical approach to overtime rules, ensuring that small businesses, including independent community grocers, can continue to thrive without the undue burdens imposed by the 2024 rule,” noted Greg Ferrara, president and CEO of Washington, D.C.-based NGA, the national trade organization representing the retail and wholesale grocers that comprise the independent sector of the food distribution industry.
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The court found that the 2024 rule’s salary threshold “effectively eliminates” consideration of whether an employee performs “bona fide executive, administrative or professional capacity” duties, favoring a salary-only test. The rule’s provision for automatic updates to the salary threshold every three years, citing violations of the notice-and-comment requirements under the Administrative Procedure Act, was also nullified.
Following this ruling, the minimum salary threshold for overtime exemption reverts to $35,568, with the highly compensated employee threshold set at $107,432.
According to NGA, it “will continue to advocate for fair and workable labor policies that support the growth and sustainability of independent grocers across the United States.”
Added Ferrara: “The independent supermarket industry is a cornerstone of America’s economy, providing nearly 1 million jobs nationwide. NGA members take pride in being employers of choice within their communities, offering stable jobs and pathways for career growth.”
