The rule includes an unprecedented salary threshold increase, poses significant threats to both the industry and the broader economy.

Washington, DC— The National Association of Wholesaler-Distributors (NAW), representing the $8 trillion wholesale distribution industry, the backbone of the US supply chain, vehemently opposes the Department of Labor’s overtime rule.

“This is deeply troubling, particularly amidst rampant inflation and the looming threat of recession,” stated Lauren Williams, Associate Vice President of Government Relations at NAW. “Distributors have spent recent years adapting operations and personnel management to meet evolving workforce needs post-pandemic, the DOL’s rule would add new regulatory burdens and compliance costs to an industry already grappling with workforce shortages and excessive regulations.

Increasing the minimum salary threshold by at least 65% percent will stifle employee growth opportunities, diminish workplace autonomy, and limit flexibility.

Courts have previously struck down similar rules because Congress’s intent is clear: the Department of Labor cannot impose a salary-level test that undermines the prescribed duties test.

NAW will exhaust all avenues, including legal recourse, to prevent the enforcement of this rule.”

The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8 trillion wholesale distribution industry. Our industry employs more than 6 million workers throughout the United States, accounting for approximately 1/3 of the U.S. GDP. 250,000 wholesale distribution companies operate across North America, including all 50 states. Learn more.