Last Updated: March 31, 2022
As of January 1, 2020, employers are required to pay overtime for all employees earning $684 a week (or $35,568 per year) or less per year. The rule replaces the one issued by the Obama DOL in 2016 which was ultimately struck down by a Federal court. That rule would have more than doubled the threshold and set up automatic updates every 3 years. NACS opposed that rule and suggested an update similar to what is currently in place. The Biden DOL has begun a review of the 2020 rule and may propose additional changes.
Labor costs are the highest single operating expense for convenience stores. It was appropriate for the government to adjust the overtime salary threshold, so it remained relevant in the current marketplace. The 2020 adjustment is in keeping with previous updates and is in line with existing salary level increases in the conveniences industry since 2004.
NACS largely supports the current overtime rule. The DOL followed most of the suggestions made by NACS and other business groups in our formal comments on how to appropriately update this important rule. As the new DOL reviews the rule, NACS will continue to engage on behalf of the industry.