ARTICLE
The Department of Labor (DOL) issued its final overtime regulation on May 18 of this year which raises the salary threshold for employees eligible for overtime pay from $23,660 to $47,476. Short of Congressional or legal intervention, this regulation will go into effect on December 1, 2016. AH&LA has been a vocal critic of this regulation, filing extensive comments to the DOL, leading an industry meeting at the Office of Management and Budget (OMB) in an effort to try to lessen the blunt impact this regulation will have, particularly on small employers in the lodging industry, and helping to lead the employer coalition in Washington, DC lobbying both Democrats and Republicans to craft meaningful compromise legislation. To that end, AH&LA joined forces with more than 50 other national and state associations in filing a lawsuit against the Department of Labor in an effort to halt this misguided overtime rule. The lawsuit, which is being led by the US Chamber of Commerce and was drafted by the Littler Law Firm, was filed in the U.S. District Court for the Northern District of Texas. The lawsuit argues that the DOL exceeded its statutory authority in issuing the regulation and further violates the Administrative Procedures Act. Further it seeks injunctive relief barring the DOL from implementing the regulation until the court has finished its review of the case. This litigation, in conjunction with a lawsuit filed by twenty-one state attorney generals will help to highlight the widespread concern that exists about this regulation. When weighing the likelihood of a legislative fix on the overtime issue, it quickly became apparent that a legal strategy was also necessary. Some other recent actions have included: AH&LA has created a series of webinars, the second of which is scheduled for Tuesday, October 18. They will send out an email invitation to join. Russell Bruch, from the law firm of Morgan Lewis and the author of AH&LA's comments to the DOL, will be the presenter and will spend the majority of the time answering specific questions from members on how to ensure they are in compliance on December 1, 2016. Leading an industry meeting at the Office of Management and Budget (OMB) in an effort to try lessen the blunt impact this regulation will have on small employers in the hotel industry. Leading the employer coalition in Washington, D.C. lobbying both Democrats and Republicans to craft meaningful compromise legislation that could replace the overreaching regulation being imposed by the DOL. The DOL's overtime regulations will have a widespread impact on our industry and as such every available option will be explored to slow down or lessen its impact. If you have any questions or concerns, please contact Paul Sacco at psacco@masslodging.com.