The American Hotel & Lodging Association (AHLA), released a statement today in response to the Department of Labor’s (DOL) final overtime rule. This rule aims to increase the minimum salary threshold, ensuring that all employees are eligible for overtime pay if they work more than 40 hours in a week.
“This rule is part of a growing list of aggressive federal regulatory efforts that are making it even harder for hoteliers to operate their businesses in this challenging environment. The impacts of this regulation will risk the elimination of jobs and make it more difficult for employees to pursue the existing pathways to success and career growth that the industry offers,” Kevin Carey, the Interim President & CEO of the American Hotel & Lodging Association (AHLA) said.
“We fear many hoteliers will have no option other than to eliminate managerial jobs that are long-established paths to advancement. AHLA is reviewing all available options, including litigation, for defeating this ill-advised regulation.”
The salary threshold for employees to qualify as exempt from overtime pay requirements under the Fair Labor Standards Act would be raised by the DOL’s overtime rule for salaried executive, administrative, and professional employees.
The regulation is one of many recent federal initiatives that are increasing the challenges for hotel owners to operate their businesses, such as rules regarding joint-employment and the classification of workers as independent contractors.
The new overtime rule will see the salary threshold rise from $35,568 to $43,888 on July 1, 2024, and then to $58,656 on January 1, 2025. The initial increase follows the department’s existing methodology, while the subsequent increase is based on the department’s new approach, setting the threshold at the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census region.
This rule follows the Department of Labor’s decision to raise the minimum salary threshold by over 50% to $35,568 just four years ago.
WHAT TO TAKE AWAY FROM THIS ARTICLE:
- The initial increase follows the department’s existing methodology, while the subsequent increase is based on the department’s new approach, setting the threshold at the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census region.
- The impacts of this regulation will risk the elimination of jobs and make it more difficult for employees to pursue the existing pathways to success and career growth that the industry offers,” Kevin Carey, the Interim President &.
- The regulation is one of many recent federal initiatives that are increasing the challenges for hotel owners to operate their businesses, such as rules regarding joint-employment and the classification of workers as independent contractors.
