AS A NATION, we’ve undergone numerous political and economic changes in the last three years. The House of Representatives and Senate flipped from Republican to Democratic control. The presidency flipped from Republican to Democratic. Our economy was effectively shut down due to a pandemic and then reopened in a somewhat haphazard way. The stock market has lost value and monetary policy from the Federal Reserve is tightening after years of growth and accommodation.
As an organization, the National Club Association (NCA) has undergone a good amount of change during that time as well and transitions will keep coming in the months ahead, for both the country and NCA.
NCA is in the midst of a leadership transition that occurs every year with the election of a new board chair and executive committee as well as the addition of new board members. These changes happen in regular intervals and are thus anticipated, but we are also in the process of transi- tioning staff leadership with the departure of President & Chief Executive Officer Henry Wallmeyer. In six and a half years with NCA, Henry strengthened the associ- ation and assembled an exceptional team of professionals dedicated to its success and the community it represents. Henry brought me on staff a little more than three years ago, and seeing how personally committed he was to the betterment of the private club community was inspiring for me as a longtime board member of a private country club. I hope all readers of Club Director understand the effect he’s had in the com- munity and congratulate him for his work. As a member of staff and multiple private clubs, I thank him for his work with NCA and the opportunity to be a part of it.
At our National Club Conference May 15–17, the board of directors asked me to step in and take the helm as interim pres- ident & CEO while the search committee works to find a permanent replacement. I accepted the charge with enthusiasm. I enjoy working as an advocate for a com- munity that has meant so much to me and my family and am looking forward to serving in whatever role the board believes is best for the association. In the meantime, what changes are in store when it comes to advocacy?
Advocacy
Much of NCA’s advocacy work in recent months has been in the regulatory arena, with potential rulemakings emanating from the Department of Labor (DOL). The Wage and Hour Division is in the process of meeting with stakeholders on the pros- pect of increasing the minimum salary threshold for exempt employees. The current threshold of just over $35,000 was established under the Bush administration and there is a high likelihood Wage and Hour will increase it to somewhere close to or just more than $50,000.
I had the opportunity to meet with DOL staff, including the assistant secretary, to offer the club perspective on a potential increase. The issues I focused on were seasonality of the work and the 10 percent limit on commission or bonus compensation that can be applied toward meeting the threshold. The example I gave is a golf professional earning a base income of $40,000 with lesson commissions equaling an additional $50,000 per year in income. Under current rules, only 10 percent of that compensation could be counted toward the threshold. Using this formula, only $45,000 of compensation would be recognized— which means a golf professional earning $90,000 per year would be eligible for over- time. Coupled with the seasonality of the work, this creates an incentive for clubs to limit the number of hours employees work in peak season, thereby actually reducing their earning power—exactly the opposite result the DOL is seeking by increasing the threshold.
In mid-May, I was invited to participate on a Zoom call with DoL Secretary Martin Walshm, who indicated the department would continue to conduct listening sessions on a potential overtime increase into June. As such, it’s unlikely we’ll see any proposed rule until late summer or early fall.
Court Case: Bylaws
You may recall from the spring issue of Club Director that NCA filed an amicus brief in a case before the Florida Appellate Court. The case involves Fiddlesticks Country Club and centers on whether the bylaws in effect at the time a member joins the club constitute a contractual agreement not subject to changes unless both parties agree. The lower court ruled that notwithstanding amendments to the bylaws voted on by the entire membership of the club, the bylaws in effect at the time the plaintiffs joined the club are a binding contract and not amendable. In its amicus brief, NCA argued that the ruling is directly contradictory to recent case law and unless overturned, would have a negative effect on any club in Florida that changed its bylaws in the last 10 years. Fiddlesticks Country Club has filed its reply brief and the case is now in the hands of the court. The court could decide to hear oral arguments in the case or issue a ruling based on briefing alone. A decision on the case could be made in six to nine months depending on whether the court hears oral arguments. NCA will continue to keep members informed on this important case.
Elections
The political world is also in a state of transition as we move from redistricting to primary season this summer. While there had been speculation for much of the past year about gains Republicans can make in the House of Representatives in the redistricting process, the end results seem to be only a slight advantage. The number of truly competitive seats continues its decline with six fewer competitive districts compared to the old maps. The political backdrop continues to favor Republicans taking control of the House in 2023, but we’re still quite a way from the general election and the political winds can shift a great deal in a short amount of time.
At the moment, the Senate appears to be too close to call even with momentum favoring Republicans. Democrats have strong candidates in states such as Pennsylvania and Wisconsin, which could end up being the states determining who wields the gavels as long as they can hold on to states that include Arizona and Georgia. It’s going to be an interesting election season and no doubt we’ll have more transitions to work through before the end of the year.