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New Overtime-Exemption Rule Looms: Are Hotels Ready?

11.1.16

The article, “New Overtime-Exemption Rule Looms: Are Hotels Ready?” featured in Hotel News Now, discussed how there’s still time for hoteliers to prepare for the U.S. Department of Labor’s new overtime-exemption rule, which is set to take effect one month from now.

Andria Ryan discussed why employers should still prepare for the for the new overtime rules, in light of a bill to delay the new overtime pay rules, being passed on September 28th.

These developments might cause some employers to hold off preparations for the exemption change, said Andria, but that’s not a good idea. President Barack Obama is likely to veto any bill out of Congress to delay the rule, she said, and the lawsuits consolidated in Texas will be heard by an Obama-appointed judge.

“This is being implemented on Dec. 1,” she said. “We think it’s unlikely that is going to change. … If you haven’t already put pen to paper on this, you’re behind.”

The Department of Labor is authorized to do what it’s doing, Andria said. However, there might be things within the new rule that can be challenged, such as the automatic increases to the threshold every three years and the 10% limit on bonuses and incentive payments, she said.

“That’s subject to some argument, so realistically, a few things you might get a little relief on, but not overall,” Andria said.

To read the full article, please visit Hotel News Now.

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