Insights
Post & Schell Hosts Greater Philadelphia Hotel Association on Oct. 15 For Seminar on Overtime Exemptions/Worker Misclassification Impact on Hotels
On October 15, 2015, The Conference Center at Post & Schell, P.C. hosted members of the Greater Philadelphia Hotel Association (GPHA) for a seminar presentation by Employment & Employee Relations and Hospitality Principal Andrea M. Kirshenbaum.
Background:
On June 30, the U.S. Department of Labor (DOL) released its long-awaited Notice of Proposed Rulemaking which contains a proposed new minimum salary threshold for workers to qualify for “white-collar” exemptions from the overtime requirements of the Fair Labor Standards Act (FLSA), among other proposals. The proposed changes (or regulations substantially similar), should they be issued in final form by the DOL, will have a wide-ranging impact on hotel/resort workers and their employers. Although the Final Rule likely will not be issued until sometime in 2016 (following comments to the proposed regulations), employers should become familiar with the key aspects of the DOL’s proposal and begin assessing its likely wide-ranging impact.
Just two weeks later the DOL issued an Administrator’s Interpretation on the misclassification of workers as independent contractors. In setting out a multi-factor test, the DOL opined that “most workers are employees under the FLSA.” The DOL Administrator’s Interpretation is one part of the DOL’s larger “Misclassification Initiative” and signals the DOL’s continued focus on worker misclassification.
Seminar Presentation:
Ms. Kirshenbaum's presentation:
- Examined the DOL’s newly proposed regulatory changes
- Identified the types of hotel/resort workers most likely to be impacted,
- Reviewed how hotel/resort employers should begin preparing today to assess the impact of the DOL’s actions and to how formulate a proactive plan to address what the DOL anticipates will lead to between a $1.2 and 1.3 billion increase in employee wages in the first year following its effective date
- Provided an analysis of the recent DOL Administrator’s Interpretation
- Provided practical guidance as to how to mitigate against the risk of litigation or DOL enforcement activity given the DOL’s guidance in this area