On Sept. 24, 2019, the U.S. Department of Labor announced a final rule for overtime pay under the Fair Labor Standards Act (FLSA). The new minimum pay requirement will become effective on Jan. 1, 2020.
The new rule updates the earnings thresholds necessary to exempt executive, administrative or professional employees from the FLSA's minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses (and commissions) towards meeting the salary level. The new thresholds account for the first growth in the employee earnings since the previously enforced thresholds set in 2004.
Why is this issue important to golf course owners and operators?
Many golf course mid-level managers are currently salaried and exempt, allowing them a flexible work schedule, without being restricted by overtime requirements. If these mid-level managers’ status changes, and owners and operators are required to pay overtime for every hour they work over 40 each week, labor costs will sharply increase.
What is the NGCOA doing about this issue?
Although NGCOA supports providing our workforce fair and competitive wages, we believe increasing the minimum pay level should be moderated to ensure the burden on business does not result in a reduced workforce or business hardship. While the new rule greatly improves the 2015 Rule, many states and members of Congress are continuing to challenge the new Rule. We will continue to fight for fairness in labor and compensation issues.
How you can get involved
The NGCOA encourages owners and operators to continue following this issue through NGCOA; once it’s published, we encourage you to share with us the impact it will have on your business. Learn more about this issue and discuss it with your peers.