Thursday, September 27, 2018

Government Exempts Some Contracts from Minimum Wage Rules

Back in 2014, the President issued an Executive Order (EO) raising the minimum wage for workers performing work on Federal contracts. Later that year, the Labor Department issued regulations implementing the EO. In 2018, the current President issued his own EO which exempted contracts for recreational services on federal lands and for seasonal recreational services or seasonal recreational equipment rentals. The EO defined seasonal recreational services as river running, hunting, fishing, horseback riding, camping, mountaineering activities, recreational ski services, and youth camps. The EO specifically stated that the exemption does not apply to lodging and food services associated with seasonal recreational activities.

The Labor Department has not revised its regulations to implement the new EO (see Minimum Wage for Contractors; Updating Regulations To Reflect Executive Order 13838). In its promulgation comments, the Labor Department explained that because of the nature of the industry, seasonal recreational workers have irregular work schedules, a high incidence of overtime pay, and an unusually high turnover rate. Implementing the old EO threatened to significantly increase the cost of seasonal recreational services on Federal lands, while limiting the hours that recreational-service workers would be available to work. Exempting these services will help prevent job losses and ensure affordable guided tours for visitors to Federal lands.

Seems like that logic could apply to all minimum-wage jobs.

No comments:

Post a Comment