Updated Fair Labor Standards Act Good News For Tour Operators

April 28, 2004

Updated Fair Labor Standards Act Good News For Tour Operators
April 28, 2004 – Lexington, Ky. – The long-awaited updates to the Fair Labor Standards Acts were announced on April 21. The updated regulations redefine who must be paid time and one-half for work over 40 hours and represent the first overhaul of the job duty requirements in the regulations since 1949.

The National Tour Association (NTA) and the United States Tour Operator Association (USTOA) as well as the International Tour Management Institute (ITMI) and the Student Youth Travel Association (SYTA) have pressed for updates to the Fair Labor Standards Act in order to clarify the working relationship between tour operators and tour directors. The new regulations are a step in this regard.

"The Department of Labor has given the industry some more explicit standards regarding discretion and independent judgment of employees. NTA and USTOA encouraged the Dept. of Labor pursue this course of action because the subjective standards of current law have spawned litigation over difficult factual inquiries," said Jim Santini, NTA Legislative Counsel. NTA and USTOA specifically asked the Dept. of Labor to clarify the tour operator/tour director relationship. The lack of guidance from the Dept. of Labor has created much confusion and resulted in litigation across many industries and disrupted the working relationship between tour operators and tour directors.

"Our work here is not done," said USTOA President Bob Whitley. "The updated regulations are a good start in lifting the mist, but we will continue to press the Department of Labor for even clearer guidance for the industry."

NTA President Hank Phillips echoed Whitley’s comments, adding, "NTA, USTOA, ITMI and SYTA did what few industries could claim to do – we reached substantial consensus among both employers and employees. Through the Argus Group, will continue to press DOL to recognize what our industry sorely needs…clarification of the treatment of tour directors."

The National Tour Association is an organization of nearly 4,000 tourism professionals from 20 countries representing the packaged travel industry. NTA provides unsurpassed business opportunities, knowledge and information to businesses involved in tour operator packaged travel. NTA also serves as a consumer advocate through its code of ethics, stringent membership requirements and education. For more information, visit http://preseason.ntaonline.com/www.ntaonline.com