Search Travel Market Report

mainlogo
www.travelmarketreport.com
U.S.A.
English
Canada
English
Canada Quebec
Français
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Air
  • River Cruise
  • Training & Resources

DOL Labor Overtime Rule Late To Work

by Richard D’Ambrosio  February 14, 2017

The American Society of Travel Agents (ASTA) may find more support from the current Congress and Administration in its continuing work to eliminate a controversial Department of Labor (DoL) rule that would increase overtime pay for an estimated 4.2 million American workers, including many travel agency employees.

President Obama approved the rule in May 2016, increasing the salary threshold at which a business needs to pay overtime, from $23,660 to $47,476 per year, with automatic increases in future years. Industry estimates place the average travel agent salary at about $38,000, so agency owners could see more of their employees eligible for overtime under the rule.

The rule had been scheduled to go into effect Dec. 1, 2016, but a preliminary injunction was granted at the last minute by U.S. District Judge Amos Mazzant, Eastern District of Texas.

This year, a Republican administration and conservative hold in both houses might make the environment more favorable to abolishing labor rules that add expenses to businesses, as well as other Labor regulations underpinning it, ASTA said.

For example, there is a long-standing Retail or Service Establishment (RSE) exemption in current law that in theory would protect travel agencies from paying overtime. The RSE, which ASTA frequently refers to as “the blacklist,” states that overtime would not apply if an employee works at an establishment “recognized as retail…in the particular industry,” where at least 75% of annual sales are “not for resale,” and the employee is paid at least 1.5 times the applicable minimum wage, more than half of it in commissions.

On Aug. 9, 2016, ASTA formally petitioned DoL for removal of travel agencies from the blacklist. Labor responded to ASTA early in late December, stating that removing one industry would be a “significant undertaking requiring the Department to consider multiple industries beyond the travel agency industry.” DoL also said that ASTA’s interpretation of some case law does not favorably apply to removing agents from the blacklist.

ASTA said it will resubmit its petition to DoL once new Labor Department leadership is in place.

In a conference call with the press last week, Eben Peck, ASTA senior vice president of government and industry affairs, said the organization is trying to find sponsors in the Senate and House of Representatives to begin legislation to have travel agents removed from the RSE, hopefully in advance of ASTA’s June 7, Legislative Day.

He said ASTA is also consulting with members of the Senate Health, Education, Labor and Pensions (HELP) Committee and the House Committee on Education and the Workforce, which handle labor issues in Congress.

  
  
Related Articles
ASTA to Host Its Largest River Cruise Expo in 2027
Reagan National Airport to Suspend Flights for July 4 Holiday Weekend
ASTA Publishes Quarterly Hotel Watch List, Recovered Commissions Top $45,000
How an Award-Winning Agency Gained Trust with LGBTQ+ Travelers
ASTA Appoints New Leadership for Membership, Marketing, and Communications
Michael Schottey Departs ASTA as VP of Marketing
ASTA Kicks Off Travel Advisor Conference with Commitment to Do More for Members
ASTA Finds that Non-Commissionable Fares Reduce Advisor Commission Rates by As Much as 30%
ASTA Finds that Non-Commissionable Fares Reduce Advisor Commission Rates by As Much as 30%
ASTA Writes in Support for Proposed DOL Rule to Clarify Worker Status

MOST VIEWED

  1. Low Water Levels Return to Rhine and Danube, Threatening Late-Summer River Cruises
  2. Ground Stop at Newark, Major Delays at Other New York City Airports Due to Thunderstorms
  3. Air Traffic Controller Strike Triggers Flight Cancellations and Delays Across Norway
  4. Groundforce Strike Continues to Cause Baggage Delays and Cancellations at Barcelona Airport
  5. TSA Now Lets You Go Through Airport Security Without a Flight Ticket at 13 Airports
  6. After Brief Respite, European River Levels Dip Again


TMR Subscription

Subscribe today to receive daily in-depth coverage from all corners of the travel industry, from industry happenings to new cruise ships, hotel openings, tour updates, and much more.

Subscribe to TMR

Top Stories
ASTA Recovers Nearly $60K in Unpaid Hotel Commissions
ASTA Recovers Nearly $60K in Unpaid Hotel Commissions

The organization’s Hotel Watch List identifies properties that have left travel advisors waiting on commission payments.

More Business Lessons from Travel Advisors Who’ve Been There Done That
More Business Lessons from Travel Advisors Who’ve Been There Done That

“One of the biggest mindset shifts I made was realizing that people can’t book with you if they don’t know you exist.”

Headquarter Happenings: Roller Coaster of a Year for Nexion Travel Advisors
Headquarter Happenings: Roller Coaster of a Year for Nexion Travel Advisors

This year’s CoNexion conference brought some 620 travel advisors and suppliers together for three full days of education and networking.

Meet Heirloom Journeys: Accessible Travel Specialists on a Mission
Meet Heirloom Journeys: Accessible Travel Specialists on a Mission

Part of Heirloom Journeys’ personalized approach includes championing accessibility within the industry.

Nexion Travel Group President Jackie Friedman Will Retire in Spring 2027
Nexion Travel Group President Jackie Friedman Will Retire in Spring 2027

Friedman, who joined Nexion first as vice president of operations in 2004, has led the host agency as its president since 2007.

Headquarter Happenings: New Biz Ops Tech Brings Nexion Into the Current Century
Headquarter Happenings: New Biz Ops Tech Brings Nexion Into the Current Century

“The takeaway is we’re coming into this century…”

TMR OUTLOOKS, WHITE PAPERS & DESTINATION GUIDES
View All
Advertiser's Voice
Booking Europe with Ease with Delta Vacations
About Travel Market Report Mission Meet the Team Advisory Board Advertise Syndication Guidelines
TMR Resources Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
© 2005 - 2026 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | Terms and Conditions
Cookie Policy Privacy Policy Manage cookie preferences