ASTA seeks overtime pay exemption for agencies
Saturday, 09 Aug, 2016
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The American Society of Travel Agents has formally filed a petition with the Department of Labor urging travel agencies be exempted from the department’s recently updated overtime rule.
Taking effect later this year, the government has extended the scope of the rule which makes many more workers eligible for overtime pay at time-and-a-half.
Full time workers earning up to $47,476 are now eligible, up from an upper level of $23,660 previously.
Workers putting in more than the standard 40 hours a week will be paid at the overtime rate for subsequent hours.
Firms are exempt from the rule if they have a ‘retail concept’ as defined by the Department.
"Travel agencies are the very picture of a retail business, so we think it’s indefensible that agencies have been held to ‘lack a retail concept’ since 1970 and thus are denied use of the retail exemption from overtime rules," said Zane Kerby, ASTA president and CEO, in a statement.
In the petition ASTA stated: "Relief sought by ASTA for travel agencies is warranted because the blacklisting was unjustified when adopted, is unjustified now, has been rejected in the courts and is easy to correct."
Even if the action is successful, agencies would still have to satisfy the ‘retail or service establishment’ (RSE) exemption to be exempt from paying overtime.
"It will provide some relief from the new rules for some agencies but travel agencies are clearly ‘retail’ and should have an opportunity to claim the RSE exemption if they qualify for it," Kerby added.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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