NGA Applauds Court’s Ruling to Nullify Overtime Rule

Washington D.C. - The National Grocers Association (NGA) today welcomed the decision by the U.S. District Court for the Eastern District of Texas to invalidate the Department of Labor's (DOL) 2024 overtime final rule.

"The court's decision restores a more balanced and practical approach to overtime rules, ensuring that small businesses, including independent community grocers, can continue to thrive without the undue burdens imposed by the 2024 rule," said NGA President and CEO Greg Ferrara.

The court concluded that the 2024 rule's salary threshold "effectively eliminates" consideration of whether an employee performs "bona fide executive, administrative, or professional capacity" duties, favoring a salary-only test. The rule's provision for automatic updates to the salary threshold every three years, citing violations of the notice-and-comment requirements under the Administrative Procedure Act,was also struck down.

As a result of this ruling, the minimum salary threshold for overtime exemption reverts to $35,568, with the highly compensated employee threshold set at $107,432.

NGA will continue to advocate for fair and workable labor policies that support the growth and sustainability of independent grocers across the United States.

"The independent supermarket industry is a cornerstone of America's economy, providing nearly one million jobs nationwide. NGA members take pride in being employers of choice within their communities, offering stable jobs and pathways for career growth," Ferrara concluded.