The new rule would require employers to pay overtime to workers earning salaries below $35,308 per year, roughly a 30 percent increase from the current salary threshold, the National Club Association notes. The NCA is also encouraging response to a survey that will help to document the need to raise the current cap on H-2B visas that is hampering clubs’ ability to adequately staff seasonal operations.
The Department of Labor (DOL) has proposed a new overtime rule that would require employers to pay overtime to workers earning salaries less than $35,308 per year ($679 per week), the National Club Association (NCA) reported. The proposal represents a roughly 30 percent increase from the current salary threshold of $23,660 per year ($455 per week).
The rule would also increase the total yearly compensation threshold for highly compensated employees from the current level of $100,000 to $147,414, the NCA reported.
The proposed new rule would not alter the current duties test, used to determine which workers are considered exempt or nonexempt from overtime, the NCA noted.
During the Obama Administration, the DOL proposed an overtime rule that increased the overtime threshold to $47,476 annually ($913 per week)—more than doubling the current rate, the NCA reported. The NCA opposed such a dramatic increase because it would significantly increase costs for clubs and hurt club employees. Prior to its scheduled implementation in December 2016, a Texas federal district court struck down the rule.
The rule proposed by the current DOL offers a more balanced approach to raising overtime pay, allowing clubs to more effectively implement its changes, the NCA reported. The proposal is now open for comment for 60 days.
The NCA also reported that as part of an effort to better demonstrate the negative impacts that the currently inadequate cap on H-2B visas is having on businesses, the organization is gathering feedback from club managers through a brief survey, sponsored by the H-2B Workforce Coalition, that is designed to provide important information that will strengthen efforts to expand the number of H-2B visas available to clubs and other businesses.
On February 14, Congress passed a bill that allowed the Department of Homeland Security (DHS) to increase the current cap of 66,000 visas to 135,325. Because the numerical cap of 33,000 visas for the second half of the federal government’s fiscal year (April 1-September 30) was met by February 19, clubs’ ability to hire workers needed to adequately carry out operations for summer-season operations has been affected.
The NCA is pushing for a swift increase of the H-2B visa cap, and the information provided through the survey is needed to help gain cap relief and a raising of the threshold, by providing data on the negative impact that the currently inadequate H-2B cap stands to have on seasonal businesses.
The survey can be accessed at https://www.surveymonkey.com/r/6DTF8F9