Native American tribes that operate casinos may see negative effects on their businesses after the Department of Labor revised its overtime exemption rule despite tribal protests about a lack of consultation on the change. The rule impacts the salary threshold for overtime exemptions and could severely impact tribes, who rely on casinos to fund law enforcement, health programs and other services for their members. Holland & Knight attorneys Philip Baker-Shenk and Kara Ariail weighed in on the implications.
"I don’t think anybody at the department with a straight face can call the development of this rule, the public comment taken and the result as anywhere close to a process which 'emphasizes trust, respect and shared responsibility,'" Mr. Baker-Shenk said.
Tribes will need to be more vigilant about how they schedule the work time of newly nonexempt employees said Ms. Ariail, who recently authored a Holland & Knight Client Alert on the subject.
"The nature of the industry, the nature of the customer base they have and the business as it’s run requires a certain amount of agility by its employees,” Ms. Ariail said. “So the type of activities managers and others currently classified as exempt perform on the go will now be more regimented and defined by the shift.”
READ: Gaming Tribes Fear Big OT Rule Impact With Little Say (subscription may be required)
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