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

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

by Richard D’Ambrosio  September 18, 2016

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.

  
  
Related Articles
ASTA Global Conference Challenges Attendees To Confront Change
The Travel Agency Proposition: Adding Value Is Key
Distribution 2020: A Big Change For Travel Agents
ASTA-NACTA Ties Grow Closer Under Chamberlin
Three Leadership Tips From ASTA Global Speaker

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