We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » IWLA, Chamber of Commerce sue to block Labor Department's overtime rule
newsworthy

IWLA, Chamber of Commerce sue to block Labor Department's overtime rule

September 21, 2016
DC Velocity Staff
No Comments

A coalition of trade associations, including the U.S. Chamber of Commerce and the International Warehouse Logistics Association (IWLA), has filed suit in federal district court to block implementation of the U.S. Department of Labor's proposal to increase the number of workers eligible for overtime pay. The complainants say the DOL overreached its statutory authority under the Administrative Procedures Act, which governs an agency's internal procedures.

The suit was filed yesterday in U.S. District Court for the Eastern District of Texas.

The proposed rule, set to take effect Dec. 1, would double the salary ceiling under which employers must pay overtime to full-time salaried workers. The current level, which took effect in 2004, limits overtime eligibility to workers who make less than $23,600 a year. The new rule would raise that threshold to $47,200 a year. The rule also promises an increase to the salary threshold every three years.

Business interests argue the rule would raise costs nationwide and would hinder job creation. The public warehousing industry, which employs many salaried workers at the affected thresholds, has become one of the rule's most vocal opponents.

"Warehousing and logistics creates new jobs every day. As it stands, the overtime rule will hinder this creation and decrease upward mobility in this sector," said Steve DeHaan, IWLA's president and CEO, in a statement today. DeHaan said the group would do "whatever it takes to fight the DOL's unjustified actions." The DOL formula is pegged to a percentile of earnings of full-time salaried workers in the lowest-wage census region, which is currently the South. In its first year, the rule is expected to make 4.2 million additional workers across multiple industries eligible for overtime pay, DOL has said.

Changes in overtime rules were enshrined in a 2014 White House memorandum directing the department to redefine what type of "white collar" workers should be protected by the minimum-wage and overtime provisions of the Fair Labor Standards Act (FLSA), the landmark 1938 law that introduced the 40-hour work week, established a national minimum wage, and guaranteed "time-and-a-half" pay for overtime in certain jobs.

The Obama administration has said the rule will put more money into the pockets of middle-class workers, such as retail and restaurant managers, who may work beyond 40 hours a week, but in the view of the Administration aren't being fairly compensated for it.

When the rules were published in May, IWLA warned that warehouse owners and managers would need to "brace themselves for big changes in order to maintain costs and stay in business." In an effort to offset higher costs, management may need to delay promotions or force managers to be paid hourly rather than through weekly, biweekly, or monthly payouts, the group said at the time.

KEYWORDS International Warehouse Logistics Association U.S. Chamber of Commerce U.S. Department of Labor
  • Related Articles

    Federal judge blocks implementation of Labor Department's overtime-pay rule

    Industry groups sue to block implementation of truck driver hours-of-service rules

    Public warehouse industry to be hit hard by new federal overtime-pay rules, IWLA says

Recent Articles by DC Velocity Staff

ATA cheers court ruling upholding looser hours of service caps

Carry (or at least measure) that weight

December cargo volume up in Houston, Oakland

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • For container lines and ports, what a difference a year makes

  • Outlook 2021: What’s in store for logistics supply chain?

  • Capacity challenges will continue in 2021

  • Shippers brace for tight capacity trend to continue in 2021

Now Playing on DCV-TV

Jlt procure rugged devices thumb

What it takes to procure the right rugged devices for your warehouse

DCV-TV 4: Viewer Contributed
Procuring new rugged devices for your warehouse is often a big decision and a significant investment. It needs careful planning and consideration. It involves more than ticking boxes on a spec sheet. It includes testing and getting employee buy in. And it's about finding a partner that can work with you to deploy...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing