ASTAnews INBRIEF
n STAY UPDATED: The Travel Agency Regulatory Compliance Course is a sure and easy way to ensure agents are up to speed on the latest regulations. The course costs $225. ASTA members can save $186 by using the discount code, ASTADOTMustKnow, valid until December 31, 2015.
n GET CONNECTED: ASTA Chapters connect members and provide a sense of community on a local level. They offer access to meetings and tradeshows, as well as the opportunity to be advocates within local legislation.
n FEEDING BACK: ASTA urges its members to send testimonials to
pr@asta.org in order to highlight the great work they do every day. Longer submissions will be posted on
TravelSense.org. Entries must include names, titles, agency names and website links.
n REACHING OUT: ASTAPAC has been raising ASTA’s political profile since 1979, thanks to the travel agents and agencies who contribute to the PAC program. ASTA is the only travel agency trade association or entity with a PAC in place.
www.asta.org/advocacyaction
ASTA AROUND THE WORLD ASTA on the world stage
THIS YEAR’S ASTA Global Convention (AGC) offered a snapshot
into the future of the
association, particularly ASTA’s growing global footprint, as it welcomed more than 90 international members to the event held from August 29-September 1 in Washington, D.C. To recognize its support of ASTA, the
International Chapter even had a presence on the main stage during the closing general session as two International Chapters were recognized with awards — Kenya and Nigeria. Kenya received the 2015 International Chapter Award and Nigeria received the 2015 International Participation Award. Representatives of both Chapters were present at the AGC and were honored to take the awards home. Te AGC was a meeting place for members
from across the world to exchange ideas and do business together, and also served as a valuable platform for networking and destination education. A highlight of the convention was the Global
Travel Exchange. Attendees enjoyed this popular session, which included a dynamic panel and interesting discussion on some of the barriers between international and domestic travel agents.
DOL PROPOSES CHANGES DOL rulings threaten travel agencies and small businesses
THE UNITED STATES Department of Labor (DOL) has taken two steps that threaten the economics of travel agencies and many other small businesses. First, the DOL has proposed new regulations to raise the income threshold for determining which employees are automatically entitled to minimum wage and overtime pay protection (read more about this in the Legislative Roundup on page 10). Te second action regards the definition used to determine who is an independent contractor, and who isn’t. Te new overtime regulations would raise the
salary level under which agents and other workers automatically qualify for overtime pay from the current $23,660 to $50,440. As the DOL’s
12 | ASTAnetwork | fall 2015
own data shows, the average salary of travel agents in 2014 was $37,730 and the proposed increase will result in many more travel agents becoming eligible for overtime pay. While there are several exemptions provided in the Fair Labor Standards Act, none of them appears to help most travel agencies avoid paying overtime to most of their employees. Te solution likely doesn’t lie in converting
employees into independent contractors. Te DOL uses a more stringent test than the Internal Revenue Service for determining who qualifies as an independent contractor, and many travel agents wouldn’t qualify. For example, the DOL’s interpretation of the law is that if the
work activity is ‘integral’ to the business of the employing business, the worker is an ‘employee.’ Another test used by DOL states that the worker’s investment in his or her own tools and equipment must be significant in relation to the entire investment of the business. Few independent contractors can qualify under such a standard. ASTA believes the DOL interpretation of
the law is too severe. It is, however, difficult to challenge outside of an appeal in an enforcement case. Since the overtime threshold increase and the strict interpretations of the exemptions and independent contractor options all limit travel agency choices, ASTA is exploring a legislative solution.
US Capitol
Looking forward, international members are
already submitting their registration for next year’s AGC in Reno from September 25-28, when another Global Travel Exchange will be held.
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