ASTA is applauding the introduction of The Travel Agent Retail Fairness Act, which would remove travel agencies from a Department of Labor (DOL) regulatory blacklist that prohibits them using an exemption from federal overtime rules for retail businesses.
The bill, introduced by Rep. Francis Rooney (R-FL 19th), directs the Secretary of Labor to revise its regulations to remove, within 90 days, travel agencies from a partial list of establishments having no "retail concept."
Congressman Rooney explained, "The idea that travel agencies 'lack a retail concept' and therefore must be subject to federal overtime rules is arbitrary and overreaching. The exemption travel agencies are seeking is in line with similar industries and should be granted immediately."
"Eliminating harmful regulations on our small business community is a key component of economic growth and job creation," added Congressman Rooney. He is a member of the U.S. House Committee on Education and the Workforce, which oversees labor issues.
The bill has been referred to the House Committee on Education and the Workforce.
It comes in response to a DOL proposal, introduced in July, 2015, to dramatically increase the salary threshold under which virtually all employees are guaranteed overtime pay, from $23,660 to $47,476 a year with automatic increases in future years.
ASTA noted that the bill is the result of its "tremendous amount of behind-the-scenes work on Capitol Hill and requires a permanent Washington presence like that provided by a national trade association," [ie ASTA].
Zane Kerby, ASTA president and CEO, said, "Not only do their [travel agencies] employees necessarily work irregular hours helping clients facing travel disruptions, but travel agencies are the very picture of retail businesses and we think it's indefensible that agencies are denied use of this exemption from overtime rules."
"We are incredibly grateful to Congressman Rooney for taking up this fight on behalf of the 48 ASTA members in Florida's 19th Congressional District and the broader industry, and will do everything in our power to see this bill through to enactment," he added.
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Eben Peck, ASTA senior vice president, government & public affairs, worked closely with Congressman Rooney's staff before the introduction of the bill.
"We commend Congressman Rooney for his leadership on this issue, which will provide a measure of regulatory relief to local small businesses while supporting an integral part of the broader travel industry so critical to Florida's economy," Peck said.
"We agree with Mr. Rooney that travel agencies should have an opportunity to claim the RSE (Retail or Service Establishment) exemption if they qualify for it. This is a fight worth fighting."
The Travel Agent Retail Fairness Act will be at the top of the list of policy issues ASTA members will discuss with Members of Congress during ASTA Legislative Day on June 7.
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