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Hospitality industry responds to proposed overtime rule changes

Tuesday, June 30, 2015   (0 Comments)
Posted by: Katie Montgomery
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The Labor Department today released proposed revisions to federal overtime laws that greatly increases the salary level that dictates which employees must be paid overtime. 

 

Under the proposed revisions, the threshold would increase from the current $23,660, or $455 a week, to $50,440, or $970 a week. This means most salaried employees earning below $50,440 a year would be eligible for overtime pay if they work more than 40  hours in a week. The DOL has proposed automatically adjusting the threshold after that, according to inflation or wage growth. About 5 million individuals would become eligible for overtime pay under the proposed revisions, according to the White House.

 

"The leisure and hospitality segment of our economy is one of the leaders in job creation in our state. If implemented, the proposed changes would have a chilling effect on the continued growth of tourism, our state's number one industry," said John Durst, SCRLA President and CEO.

 

"We share the concerns of our national affiliates, the National Restaurant Association and the American Hotel and Lodging Association, that these proposed changes would negatively impact most members of the hospitality industry by limiting hours or reducing base pay to compensate. The new rules could also have unintended consequences that prevent the advancement and opportunity for many in our industry, creating barriers to our continued ability to grow and preserve jobs. As an industry that fosters long-term career opportunities for our employees, these rules could interfere with day-to-day business practices and potentially restrict employee and employer flexibility, especially to many small businesses."

 

Link to AH&LA statement on proposal

 

Link to NRA response to proposal


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