New rules around overtime pay will be implemented in one fell swoop across the U.S. come December. But the ripple effects are expected to be far less uniform.
Instead, the change is expected to put greater pressure on those retailers with a large number of small stores in low-cost markets, where companies will be required to pay the same salaries as those operating in big cities, according to Goldman Sachs analysts. Namely, Goldman called out dollar stores and convenience stores as most at risk.
Separate research by Deutsche Bank found that dollar stores are likely to feel the most pressure from the new rule, as its analysis of Glassdoor data concluded that store managers at several of the large chains earn average annual salaries between $38,000 and $45,000.