DC Velocity - September 2016

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32 DC VELOCITY SEPTEMBER 2016 www.dcvelocity.com
A In the near future, I expect to see the “Uber-fication” of positions
within distribution or fulfillment
centers. For example, companies
will digitally post various schedules
for 100 order selectors on their web-
site, and associates who have been
previously vetted and certified can
go online and choose the sched-
ules that work best for them. The
labor market will be able to react
in real time, so companies will be
able to make quick adjustments in
schedules or pay rates to attract the
required number of associates.
Some of the changes facing ware-
house operators will be determined by the
timing and duration of our next reces-
sion. In recessionary times, labor becomes
more plentiful, and while I do not antici-
pate a retraction of the pay rate increases
that we’ve seen in the last 24 months, any
further increases would be unlikely.

QNew federal overtime rules have broadened the universe of workers that are eligible for overtime. What will be the impact on warehouse staffing costs and availability?

A The changes will impact warehouse supervisors and managers with annual salaries of less than $47,476. Hourly employees will not be affected by the new ruling. Currently, most salaried employees earning more than $23,660 are exempt from overtime pay. Under changes to the Fair Labor Standards Act, effective Dec. 1, salaried employees must make more than $47,476 a year before they will be exempt from overtime pay. Companies will have to be prepared to pay more employees overtime or to change their salaries to meet the new threshold.

This change takes effect in the middle of peak season, so companies have to take this into consideration for the end of the year.

QThe growth of e-commerce and a broad recovery in the industrial market is leading to more project approvals and construction of new DCs. Is the labor market big enough to accommodate the ongoing expansion?

AThe Bureau of Labor Statistics (BLS) tracks a segment of the population it classifies as “Not in Labor Force.” These are people 16 years and older who are neither working nor unemployed. They might be in school or retired or simply not actively looking for work. The number of people “Not in Labor Force” has grown by more than 17 million people in the last 10 years. We now have over 94 million people who fit this description. I’m certain that companies will find ways to attract many of these people back into the work force. By increasing pay rates and offering flexible work schedules for students, retirees, and stay-at-home parents, we can meet the demand for more workers.