GCSAA submits comments on overtime pay rule
On May 20, GCSAA, CMAA, NCA and NGCOA submitted joint comments to the U.S. Department of Labor (DOL) in response to a DOL proposed regulation defining exemptions from the Fair Labor Standards Act’s overtime requirements for certain executive, administrative and professional employers. The comments focused on three areas:
- Consideration for seasonal operations
- Inclusion of nondiscretionary bonuses, incentive payments and commissions in the salary level requirement
- Future updates to the earnings threshold
Labor Secretary Alexander Acosta previously said the salary threshold proposed by the department under the Obama administration was excessive and too burdensome on many employers. The Obama-era rule 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. However, Acosta suggested that the current minimum salary level of $23,660 should be updated and moved forward with revising the regulations. The overtime pay rule was last adjusted in 2004.
The 2019 rule proposed by the current administration increases the salary threshold for overtime, but by less than the 2016 rule would have. Under consideration:
- Increase the EAP threshold from $23,660 annually to $35,308
- Nondiscretionary bonuses and incentive payments such as commissions could be used to satisfy up to 10 percent of the standard salary level
- Would propose updates to the threshold every four years but does not include automatic updating
- Formally rescinds the 2016 final rule
On July 26, 2017, the current DOL published a Request for Information on what changes should be part of a new proposed overtime rule and received more than 200,000 comments, including ones from the golf industry. A district court on Aug. 31, 2017 found that the 2016 rule’s salary level exceeded the DOL’s authority and the Obama administration overtime pay rule became invalid. On March 7, 2019, the current DOL announced the proposed overtime pay rule and the comment period ended on May 21, 2019.
Current law requires employers to pay their employees time and a half wages for each hour worked over 40 hours per week. Some states have created daily overtime regulations. Exemptions include salaried employees earning over $23,660/year; housekeepers, salespeople working nonstandard hours, etc. The DOL Wage and Hour Division specifically manages overtime compliance.