On May 18, 2016 the US Department of Labor released its new rules on the salary threshold for overtime pay. DEMA is disappointed with the new rules which have been established without congressional vote and which more than double the salary threshold below which workers will be eligible for overtime from its current $455 per week ($23,660 per year) to $913 per week ($47,476 per year). The rule goes into effect on December 1.
Additionally, the final rule includes a mechanism for automatically updating the salary threshold every three years (a change from the proposal of yearly adjustments). The next automatic update to the salary threshold would be on Jan. 1, 2020, and the new salary level will be announced 150 days before it takes effect. The minimum salary level is set based on the 40th percentile of wages of full-time salaried employees in the lowest wage Census region (currently, the South).
Importantly, the Labor Department decided not to make changes to the “duties test,” part of the three-pronged test for establishing exemption from overtime eligibility. In a draft rule released last year, DOL hinted that it might limit the definition of “primary duty” to duties on which an exempt employee spends 50% or more of his or her working hours. In many situations, that would have meant that employers would need to track the hours and tasks of exempt employees to ensure that they had accurately identified the employee’s primary duty. So with no changes to the duties test, the basic test for determining who in your organization remains exempt from overtime eligibility under the executive, administrative, or professional exemptions is as follows:
While DEMA supports the principle of modernizing and streamlining the Fair Labor Standards Act, including the overtime rules, DEMA’s written public comments, filed last September, expressed our concerns that this rule, as proposed (and as now enacted), contains a threshold which is too high and that the minimum salary level for exempt employees should instead be keyed to government data on regional cost-of-living differences or keyed to the Consumer Price Index. Such a dramatic increase will create the necessity for many workers in every sector of the diving industry to be re-classified as hourly, increasing costs with the result being that it will be difficult to allow these individuals to attend educational and technical conferences which are critical to maintaining their expertise and their positions with an employer. DEMA’s comments also pointed out that these rules may cause employers to consider reducing their work forces, and they do nothing to help employers and employees account for the way people work today; the rules actually discourage the concept of working remotely; they favor elimination of mid-level management and entry-level administrative positions, and they make it more difficult for lower-level employees to climb the professional employment ladder. The rules attempt to create a one-size-fits-all framework in a modern work environment that otherwise rewards flexibility.
Earlier this year, before the announcement of the final version of these rules by the Department of Labor, DEMA approached members of Congress and asked for their support in delaying or overturning the plan. Now that the rules have been announced they are subject to a 60-legislative day provision in the Congressional Review Act, permitting 60 legislative days for the Congress to vote to overturn the rule with a simple majority.
If you are concerned about the impact of the overtime rule on your company, we strongly urge you to contact your elected representatives in Congress and share how this change will affect your company’s bottom line.
Your message to your Representative and Senator should be personalized and we encourage you to add details about the work of your organization and how the final rule would impact your company. The following text may help guide you:
DEMA continues to believe that the salary threshold is set too high, and that the minimum salary level for exempt employees should instead be keyed to government data on regional cost-of-living differences. The final rule includes a 100 percent increase to the minimum salary threshold. This is likely to disproportionately impact small businesses in the diving industry and their employees, especially those in low cost-of-living areas.
DEMA will continue to work toward a legislative solution to keep DOL’s overtime rule from taking effect in December, and will continue to share updates on this important issue as they become available. If you have questions about this issue, please email DEMA at publicpolicy@dema.org or contact us at 858-616-6408.
|
Thursday, May 26, 2016
Industry Alert: Your Input is Needed NOW - New Department Of Labor Overtime Rules
DEMA Kicks Off New Marketing Campaign, Launches GoDiveNow.com
On May 24, 2016 the website for DEMA’s new national marketing campaign, Go Dive Now went live. The campaign itself includes the Go Dive Now website, providing direct links to local DEMA Member retail stores and dive vacation destinations, highlights the many benefits of diving and eases barriers to entry by offering information and resources for potential new divers. DEMA Member Retailers receive free Facebook advertising focused on the customers near their stores, and the opportunity and resources to market their own services and businesses by engaging in this US and International Member campaign. The ultimate goal of this new marketing campaign is to help drive growth for the diving industry.
The official website for the campaign,www.GoDiveNow.com, is now live. Potential divers will find a wealth of information and resources available to them to help them learn more about diving and begin their journey into the sport. Among its many resources, the website includes a helpful professional dive center locator, listings of DEMA Member international vacation destinations, FAQ’s, videos, and ways to connect with other divers through social media.
Through the Go Dive Now campaign DEMA Member Retailers will also have access to campaign tools which can help them engage with and take advantage of the Go Dive Now brand. DEMA Members will be able to access, at no charge, a Member Toolkit containing an email ad template, Facebook ads and images, digital banner ads and receive a bi-monthly touch point that recaps all social media posts, making it easy for dive stores to like, copy, share, repost, and retweet all the Go Dive Now social media posts. Members will also receive professional tips for using social media to get more store and web traffic. Additionally, all DEMA Members will receive their very own evaluation to determine the local zip codes that should be targeted near their store when conducting their own promotional efforts. Non-Member retailers are encouraged to join DEMA so they too can capitalize on the additional exposure they can receive through this campaign and the resources available within the Member Toolkit.
Beyond the website, Go Dive Now will focus heavily on marketing through social media (such as targeted Facebook and YouTube advertising) and pay-per-click ads around the country. These Facebook ad buys will be focused mainly around local DEMA Member retail stores. Now is the time to become a 2016 DEMA Member to make sure your location is included. As the campaign evolves, other advertising opportunities will be evaluated including Twitter and Instagram channels. More than a way to drive just certifications, Go Dive Now utilizes industry research to locate and target the audiences that will be most likely to fully engage in diving, including buying equipment, diving locally and buying dive travel. Go Dive Now, is expected to be a multi-year campaign and has been and will continue to be, a collaborative effort amongst industry stakeholders through the gathering of marketing insight, coming together for brainstorming sessions, and sharing media files for promotional efforts.
The DEMA Board of Directors and Consumer Marketing Committee have spent the past year developing this campaign. The Consumer Marketing Committee is headed by Kristin Valette, Chair and additional Committee members include: William Cline, Stuart Cove, Scott Daley, Doug McNeese and Laura Walker.
Visit www.GoDiveNow.com to learn more; follow @GoDiveNow on Facebook and Twitter; and use hashtag #GoDiveNow with all your scuba-related social media posts!
Public Policy Alert: New Department Of Labor Overtime Rules Announced
On May 18, 2016 the US Department of Labor released its new rules on the salary threshold for overtime pay. DEMA is disappointed with the new rules which have been established without congressional vote and which more than double the salary threshold below which workers will be eligible for overtime from its current $455 per week ($23,660 per year) to $913 per week ($47,476 per year). The rule goes into effect on December 1.
While DEMA supports the principle of modernizing and streamlining the Fair Labor Standards Act, including the overtime rules, DEMA's written public comments, filed last September, expressed our concerns that this rule, as proposed and as now enacted, is too much, too quickly, and will create the necessity for many workers in every sector of the diving industry to be re-classified as hourly, increasing costs and thus making it difficult to allow these individuals to attend educational and technical conferences which are critical to maintaining their expertise and their positions with an employer. Further, DEMA's comments pointed out that these rules may cause employers to consider reducing their work forces, and they do nothing to help employers and employees account for the way people work today; the rules actually discourage the concept of working remotely; they favor elimination of mid-level management and entry-level administrative positions, and they make it more difficult for lower-level employees to climb the professional employment ladder. The rules attempt to create a one-size-fits-all framework in a modern work environment that otherwise rewards flexibility.
In March, DEMA Executive Director Tom Ingram met at the Washington, DC offices of the following California legislators, bringing our concerns to them and asking for their assistance:
- Congressman Ami Bera
- Senator Barbara Boxer
- Congresswoman Judy Chu
- Senator Dianne Feinstein
- Congressman Devin Nunes
- Congressman Scott Peters
- Congressman Mike Thompson
Support was forthcoming from some of these members of Congress, while others were in favor of the new rules as proposed. To date the Department of Labor rules have yet to be scrutinized by the full Congress, and are subject to a 60-legislative day provision in the Congressional Review Act. Once a new rule such as this is made final, the Congressional Review Act gives Congress 60 legislative days to vote to overturn the rule with a simple majority. In the next few days, DEMA will ask all members of the Industry to reach out to their own federal legislators and express opinions and concerns regarding how this new rule will impact their own businesses. Please look for the Industry Alert early during the week of May 23.
In addition, DEMA plans to conduct seminars on the rule at DEMA Show 2016 in Las Vegas to assist industry businesses in their implementation of the requirements of the new Department of Labor rules. Attend DEMA Show and these free seminars to learn about the rules and how to protect your company from lawsuits, increased labor costs and other disruptions.
Tuesday, May 17, 2016
DEMA Board of Directors to Meet in San Diego, CA for Quarterly Board Meeting on May 19th and 20th
DEMA’s Board of Directors will meet on May 19th and 20th to strategize ways to help grow our Industry and provide added value for DEMA Members. Topics for discussion will include DEMA’s latest consumer marketing campaign, Go Dive Now; strategic planning; DEMA’s Reaching Out Award nominations; and discussion of new association policies to help DEMA thrive in the future.
Day one of the Board meeting will begin with the Board approving reports from past and completed activities as part of the “consent agenda.” For May, the consent agenda will include:
- DEMA Show Update
- Public Policy Committee Report
- Board Member Departure Update
- Membership Update
- Pool Tour PR Update
- Q1 Financial Update
Following approval of the consent agenda, Kristin Valette, Chair of the Consumer Marketing Committee, will provide the Board with an update on DEMA’s latest consumer marketing campaign, Go Dive Now. The Board will then utilize the face-to-face time to strategize how to better benefit members and the Association through potential changes in the DEMA bylaws and policies. Board Members will also discuss the current Reaching Out Award nominees and voting process, and input received from travel wholesalers regarding how to better educate consumers and vendors on the issues of buying dive travel.
Day two of the Board of Directors Meeting will commence by allowing the members of one Board Committee and one short-term Task Force to meet and develop their objectives and goals for the year. Any Board Member can volunteer to work in various Committees based upon their areas of expertise and interests. Committees and Task Forces are tactical and the goals of Committees include creating new ideas, improving current programs and benefits, clarifying or resolving pending issues, and soliciting feedback from Industry stakeholders. Within their areas of focus, Committees’ ideas and suggestions are well-researched, strategically-developed, and when ready for further action, proposed to the entire Board for input, further development, and implementation. Additional Committee information is available online.
After the Committees have concluded their discussions, the Board of Directors will address any new business and conclude the afternoon of Friday, May 20th. More information on DEMA’s Board of Directors and Bylaws is available on the DEMA website. Complete minutes from past Board of Directors Meetings are available to current DEMA Members from the Member Dashboard of www.dema.org.
More information on DEMA’s Board of Directors and Bylaws is available on the DEMA website. Complete minutes from past Board of Directors Meetings are available to current DEMA Members from the Member Dashboard ofwww.dema.org.
Subscribe to:
Posts (Atom)