Convenience stores are also likely to see more workplace investigations.
NATIONAL REPORT — Retailers should brace for a tougher regulatory environment as the Biden Administration tightens overtime rules and strengthens enforcement.
“Convenience stores are at special risk of overtime violations because they have a substantial hourly worker base,” said Marty Heller, a partner at Fisher & Phillips who has represented convenience stores in wage and hour matters.
The Biden Administration has already reversed some Trump era initiatives meant to lower the hurdles required to exempt workers from overtime. Heller anticipates additional moves ahead. “What I expect to see moving forward is a new attempt to raise the minimum salary level for exemptions. Also, the DOL [U.S. Department of Labor] may change the regulatory guidance for white collar exemptions.”
He also anticipates a substantial increase in the budget for the Wage and Hour Division of the DOL. “We believe that will lead to the hiring of new investigators. The immediate impact for convenience stores will be more workplace investigations,” he said.
The federal moves are happening at the same time that more states are passing employee-friendly legislation that expands the work subject to overtime.
“Employers often overlook the fact that compliance with the federal Fair Labor Standards Act doesn't necessarily mean compliance with state laws,” noted Heller. “This can be a particular problem for employers that operate...
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