More on Department of Labor Overtime Rule

This is why GCSAA has active involvement in government affairs issues across the country. On May 18, the Department of Labor (DOL) announced the final ruling that increases the salary threshold at which employees must be paid overtime. To learn more about this rule and how it affects your course, sign up for the June 29 webinar, , "Getting Ready for the New DOL Overtime Rules."

In the meantime, here is some background information:

Under the new rule, individuals who earn salaries of less than $47,476 a year will automatically qualify for overtime pay of time-and-a-half if they work more than 40 hours a week. Previously, those who earned more than $23,660 were exempt from overtime pay. The new rules will go into effect Dec. 1, 2016.

This change dates back to last summer when the DOL announced the original version of this rule, allowing an open comment period to hear the public’s thoughts on said rule. Along with other allied organizations, GCSAA submitted a letter (collectively submitted as the ‘golf industry’), that expressed our concerns with this new rule. Along with other concerns, one thing the golf industry addressed in that letter was that the wage increase was too steep and the financial implications of this increase could cost others their jobs. Originally, the proposed rule offered a minimum salary of $50,440.

While the DOL slightly decreased that minimum salary, this new rule will certainly create some tough budgeting decisions for much of our industry, not just our maintenance departments. One other positive to take away is that, for the first time, employers will be able to use non-discretionary bonuses and incentive payments including commissions, to satisfy up to 10 percent of the standard salary level of $47,476.

The golf industry talked to members of Congress and their staff about the impacts of the overtime rule during National Golf Day. Members of Congress were asked to support H.R. 4773 or S. 2707. The Protecting Workplace Advancement and Opportunity Act would ensure the DOL pursues a balanced and responsible approach to updating federal overtime rules.

As stated, the new rule will go in to effect on Dec. 1 of this year. At this time, it doesn’t look like anything is going to change that. So, please plan accordingly and communicate with your business about this rule’s effects on your department. And again, please participate in the webinar for more information. Contact me with any questions.