NATA Asks Labor Department To Rethink Overtime Proposal

NATA is asking the U.S. Department of Labor to rethink its proposal to increase the salary threshold for mandatory overtime, saying such a move could harm aviation businesses and reduce pay for workers. The Department of Labor in July proposed to more than double the salary threshold for workers who qualify for mandatory overtime to $50,440. Comments on the proposal are due tomorrow.

NATA, which asked its members to weigh in on the proposal, said the move would deter some companies from promoting employees. “The end result will be reduced take-home pay and loss of benefits,” NATA warned the Department of Labor in its comments. The association noted that aviation businesses are spread throughout the nation and are often in areas where the cost-of-living is lower. “These businesses will be especially hard hit by this ‘one-size-fits-all’ proposal,” it said.

Instead of focusing on proposals to increase employer costs, NATA said, the government should instead look at pro-growth tax and economic policies. “While an economic recovery is under way, recent events on the global equities markets underscore its fragile nature,” NATA said, noting that general aviation fuel consumption is still estimated below pre-recession levels. “The nation would greatly benefit from the administration and Congress moving forward together on the adoption of long-term, permanent, pro-growth tax policies in lieu of this proposed mandate to increase employer costs.” NATA cited bonus depreciation as one such pro-growth measure.