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Check in regularly as GCSAA's government affairs department keeps you informed about important compliance deadlines that impact golf facilities. Hot topics – some that fall within the 2019 Priority Issues Agenda are critical to golf facilities.

DOL overtime pay rule status

by Government Affairs Team | Jul 17, 2017

The overtime rule finalized by DOL in 2016 would have doubled (to $47,476) the salary threshold under which virtually all workers are guaranteed overtime pay if they work more than 40 hours per week. The rule was set to take effect last December, but business interests as well as 21 states challenged the rule and a federal judge in Texas issued a preliminary injunction blocking the rule. The Obama administration appealed, leaving the Trump administration to decide whether to continue the appeal or drop it.

In late June, the DOL dropped its defense of the Obama administration's overtime rule, but indicated it will defend the agency's right to set a salary threshold on who qualifies for overtime pay in the future.

Labor Secretary Alexander Acosta told Congress during his confirmation hearing that an update to the overtime rule might be warranted, but that he had "serious questions" about the previous administration's efforts to double the salary threshold. That "goes far beyond a cost of living adjustment," Acosta said. He went on to say that an inflation-adjusted threshold would be about $33,000.

On June 27, the DOL sent a formal Request For Information on the rule to the Office of Management and Budget, which kick starts potentially changing the rule in the future. "Once approved by OMB that request would ask the public to comment on a number of questions that would inform our thinking," Labor Secretary Alexander Acosta told a Senate subcommittee on June 27.

The golf industry weighed in with public comment on the Obama administration's overtime pay rule in November 2015 and will be part of the process of drafting any new rule. The golf industry is not against increasing the overtime salary threshold, but said in its comments that creating a "one-size-fits-all" salary threshold for overtime eligibility across the country — inconsiderate of cost of living differences — would not be workable for many golf facilities and, in fact, would harm many affected employees as well.