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Labor

Club employees have the right to work in a safe environment and to be compensated fairly for their work.

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The federal government and states should provide minimal interference and allow employers flexibility in determining wages. Federal and local laws and regulations should provide a more stable and predictable standard by which to determine employment status and worker classification that also recognizes long-standing traditions and customs within industries and avoid policies that unnecessarily disrupt operations.

All employees should be free to choose whether to join a union or discontinue membership without coercion or intimidation from any entity or individual. Additionally, NCA supports the statutory 40-hour workweek established by the Fair Labor Standards Act and supports proposals seeking to ensure alignment of federal policies.

Current Legislation:

The legislation would require employers to hand over personal information about their employees to union organizers with no option for employees to opt out. Information required includes personal emails, phone numbers, home addresses, work schedules, and other sensitive information. In addition, the legislation allows organizing under “card check” rather than secret ballot, adopts the California “ABC Test” for independent contractors, and cancels “Right to Work” laws in the states.

Status:

The bill was considered in the House of Representatives on February 6, 2020, and passed by a vote of 224 to 194.

NCA Position:

NCA opposed the PRO Act because it forces employers to provide sensitive information about their employees with no assurance the information will be secured. Additionally, the legislation dramatically alters the balance in federal labor laws.

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The legislation would increase the federal minimum wage from $7.25 to $15.00 an hour over six years. It would also eliminate the separate federal minimum wage for newly hired workers under the age of 20 and the federal minimum wage for tipped employees.

Status:

The House of Representatives passed the Raise the Wage Act on July 18, 2019 by a vote of 231-199.

NCA Position:

NCA opposed the legislation because it raised the minimum wage nationwide to a level that would likely be unsustainable in many areas of the country and the impact it would have on private clubs. The federal minimum wage has not been increased in over ten years and while opposed the Raise the Wage Act, NCA believes employees have the right to be fairly compensated for the work performed.

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In January of 2020 the Department of Labor issued a final rule to provide clarity on the issue of joint employer status under the Fair Labor Standards Act (FLSA) that will affect franchisers and companies that frequently use independent contractors. The rule followed the contours of the proposed rule and establishes a four-step measure to determine joint employer status. Sources have indicated that meeting just one of the criteria may not necessarily mean joint employer status will be conferred.

  1. Do they have the right to hire and fire employees?
  2. Do they supervise and control the employees’ work schedules and conditions?
  3. Do they determine the rate of pay and payment method for the employees?
  4. Do they maintain the employee’s employment records?

Status:

This rule is the first of a three-part approach the administration is taking to clarify joint-employer status across federal jurisdiction and law. The National Labor Relations Board (NLRB) finalized a similar rule to establish consistency between the FLSA and the National Labor Relations Act (NLRA). The Equal Employment Opportunity Commission is also expected to issue a rule.

NCA Position:

NCA supported the definition of Joint Employer as finalized in the Department of Labor’s rule.

The threshold for determining whether an employee is exempt or non-exempt was increased from $23,660 to $47,476 in 2016 under the Obama Administration. That rule was invalidated by the federal courts, which meant the Department of Labor had to initiate the rulemaking process again in order to increase the threshold that had not been increased since 2004. In September of 2019, the Department of Labor finalized a rule that increased the overtime threshold to $35,308. Employees above that threshold still had to meet the duties test to determine whether they are in fact, exempt employees. Employees below that threshold are assumed to be non-exempt and thus eligible for overtime.

Status:

Finalized, September 24, 2019 and went into effect January 1, 2020.

NCA Position:

NCA supported the final rule.

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