Federal Department of Labor Overtime Rule threshold increased July 1
On July 1, 2024, the salary threshold required to exempt a salaried professional from overtime pay increased from $35,568 to $43,888 ($844/week). Another increase is set to take effect on Jan. 1, 2025 to $58,656. The Highly Compensated Employee (HCE) threshold also increased from $107,432 to $132,964 on July 1, 2024, and is set to increase to $151,164 on Jan. 1, 2025.
Applicability of overtime for employees at or below the HCE threshold is determined by the duties test as defined by the DOL. Employers should review their salaries and evaluate their classification policies to ensure they are compliant with the new overtime rule that’s currently in effect. DOL New Rule Details: https://www.dol.gov/agencies/whd/overtime/rulemaking
The final rule affects nearly 4 million workers and has several pending legal challenges. It’s suspected that pending legal challenges may succeed in proving the rule exceeds the DOL’s authority under the Administrative Procedure Act because the FLSA’s executive, administrative, or professional exemption is based on employees’ salary and not their job duties. A judge for the U.S. District Court for the Eastern District of Texas found the change exceeds the authority delegated by Congress to define and delimit the relevant terms…and therefore, these changes to the minimum salary level are likely “in excess of statutory jurisdiction.”
The case out of Texas continues and the U.S. Supreme Court’s decision issued in late June in Loper Bright Enterprises v. Raimondo, (which overruled the 40-year-old Chevron deference framework) gives further credibility to the likelihood the rule may be overturned by the courts. The outcome of the November election could also impact the rule. A similar overtime rule threshold increase and legal challenge in 2016 was not appealed by the incoming new administration.
Updated labor law posters available
MRA has updated federal and state labor law posters available to members. Updates bring all postings up to spring 2024 versions and now feature a state poster and federal poster instead of one extra large poster. As a MRA member benefit, you get one free set of posters (sold elsewhere for $30-$40). Members who previously requested older versions of the labor law poster should have either received the free updated posters and an email to order new sets if multiple posters are needed.
To get your free state and federal posters, use coupon code LABOR1 during check out. Additional poster sets cost $30 each plus tax. Order here: https://shop.retailers.com/
New We Card in-store campaign targets “social sourcing”
The national non-profit We Card Program, Inc. recently launched a nationwide in-store campaign to raise awareness of adults’ role in “social sourcing” and is offering retailers an opportunity to address the issue by ordering free campaign materials while they last from wecard.org/free-kit.
Rise of consumer escapism and the joy economy
Consumers fed up with economic challenges, climate change, security, and the 2024 election are seeking temporary escapes to create joy in their personal environments. Consumer behavior analyst Circana found in its The Great Escape: Exploring the Rise of the Joy Economy report that three main categories make up the joy economy trend: nostalgia, inspiration/aspiration, and self-care. Sixty-one percent of shoppers want brands to help them escape by providing intense emotions with their marketing and products.
Nostalgia: Licensed product categories saw sales increases in 2023 across toys, video games, and backpacks with the top U.S. growth licenses steeped in core nostalgia brands and millennial childhood classics like Spider-Man and Teenage Mutant Ninja Turtles. Beverages also got in on the return to essential memories that resonate with childhood by rebranding classic flavors like SunnyD for an adult audience as a vodka seltzer.
Inspiration/aspiration: Products that help consumers engage with content, influencers, and activities to elevate moods and achieve goals make up the inspiration/aspiration category. Think of new travel/adventure ideas, hobbies, and creative pursuits like pickleball. Aspirational shopping is about achieving a desired feeling and made up of little luxuries as evidenced in an increase in value-focused fragrance options as well as luxury fragrance brands.
Self-care: Shoppers want more proactive self-care activities that encompass mental and social health, weight management, lifestyle and habits, and energy for themselves, their families, and their pets. Post-pandemic, there’s a focus on relaxation and reducing anxiety while improving health. Again the focus is on the small achievable steps like taking more vitamins and supplements vs. celebrations and vacations.
Vitamins and supplements have seen growth year-over-year since 2019 with growth by 4% and 6% respectively in 2023 over 2022. Pet health and wellness sales increased 10%. High-protein food items are one of the current most important food preferences for younger consumers looking to add more protein rather than how older consumers focus on avoiding fat and sugar.
Deadlines and Reminders
Monthly Reminders:
• Sales & Use Tax – Monthly & EFT – On or before the 20th day of the following month.
• Withholding Tax – Monthly & EFT – On or before the 20th day of the following month.
• Retailer’s Prepaid Wireless 911 Surcharge – Within 30 days of the close of each month. Receipt of a complete Form 5012 is required regardless of payment method.
Quarterly Reminders:
•Corporate Income Tax (CIT) Estimated Returns and Payments (Jan. 15, April 15, July 15, Oct. 15).
•Sales & Use Tax – Quarterly & EFT – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).
•Withholding Tax – Quarterly – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).
