‘Time Is Of The Essence’ As DoL Plans Overtime Rules Change

With just two months until new Department of Labor (DoL) overtime rules go into effect, ASTA continues to press DoL for a rulemaking that would spare agents from the potential increase in costs. A session today, led by ASTA general counsel Peter Lobasso and senior vice president of government affairs Eben Peck, will update members on what ASTA is doing, and how they can prepare to meet the  Dec. 1 deadline.

Agents have been analyzing their options since the ruling was announced in May, Lobasso said, and “for the most part, members who are aware of the new rules and will be affected by them are working diligently to educate themselves as to the available responsive options. Time is of the essence.”

In a July webinar attended by about 170 members, ASTA discussed various options, including reclassifying employees from exempt to non-exempt or pushing their salaries above the $47,476 threshold for overtime eligibility. Since then, “the content and the guidance have been updated, so those attending the AGC session will definitely learn something new,” Lobasso said. 

The panelists also will discuss the option of using independent contractors, “as a means of avoiding or minimizing the impact of the new overtime rule.”

The long-standing Retail or Service Establishment (RSE) exemption in current law could help some travel agencies avoid the costs and complexities that will come from complying with the new overtime rules. To qualify, the employee must work at an establishment “recognized as retail…in the particular industry”and where at least 75% of annual sales are “not for resale,” and must be paid at least 1.5 times the applicable minimum wage, more than half of it in commissions.

DoL has included travel agencies on a “blacklist” of industries that are deemed to “lack a retail concept” and thus can’t qualify for the RSE “under any circumstances.” On Aug. 9, ASTA formally petitioned DoL for removal of travel agencies from the blacklist. “Going forward, we’ll be monitoring legislative efforts to modify the new rules and, of course, keep our members fully apprised of the latest developments,” Lobasso said.