AHLA TO CHALLENGE DOL’S OVERTIME RULE, FEARING MANAGERIAL JOB LOSS

THE AMERICAN HOTEL & Lodging Association is weighing all options, including litigation, to contest the U.S. Department of Labor’s final rule revising overtime
regulations under the Fair Labor Standards Act. The association is concerned that many hoteliers may be forced to eliminate longstanding managerial positions,
which serve as crucial paths to career advancement.

The updated rule features two-tiered increases in the minimum salary threshold and the threshold for highly compensated employees, along with automatic updates to
both thresholds, DOL said in a statement. The minimum salary threshold will rise to $43,888 on July 1, followed by an increase to $58,656 on Jan. 1, 2025.

This represent more than a 60 percent increase from the current $35,568 threshold, DOL said. The HCE threshold will jump to $132,964 on July 1, then to $151,164
on Jan. 1, 2025—an over 70 percent increase from the current $107,432 threshold, DOL added. The updated rule includes automatic updates to both the minimum salary
threshold and the HCE threshold, which will be raised every three years.