Sponsors (5)
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Creates a new exemption to the Fair Labor Standards Act so certain outdoor recreation workers (outfitters, equipment rental staff, and guides) employed by highly seasonal or short‑season businesses are not entitled to the Act’s overtime and minimum‑wage protections. The rule applies to employers that operate no more than seven months in a year or whose prior‑year receipts are concentrated so that any six‑month period averaged no more than 33% of the other six months. The change applies to workweeks beginning on or after the law is enacted.
Insert a new paragraph (2) into Section 13(a) of the Fair Labor Standards Act (29 U.S.C. 213(a)).
Exempt any employee primarily engaged in outdoor recreational outfitting (including equipment rentals) or guiding services, who is employed by a business providing such outfitting or services.
Condition A for the exemption: the employer does not operate for more than seven months in any calendar year.
Condition B for the exemption: the employer had average receipts for any six months of the preceding calendar year that were not more than 33 percent of its average receipts for the other six months of that year.
The amendment made by this Act applies with respect to wages and overtime compensation required to be paid for workweeks beginning on or after the date of enactment of this Act.
Who is affected and how:
Outdoor recreation employees and guides: Directly affected because, if their employer qualifies, they will no longer be covered by the FLSA overtime protections for qualifying workweeks. That can reduce total pay for workers who regularly work over 40 hours without employer‑paid overtime.
Seasonal and short‑season outfitters and guiding businesses: Benefit by becoming exempt from FLSA overtime liability for qualifying workers. This may lower labor costs and change hiring and scheduling decisions for businesses that operate primarily in a short season or have highly seasonal revenue.
Small businesses and tourism communities: Small, tourism‑dependent employers (kayak outfitters, fishing guides, ski‑season rental shops in short seasons) are most likely to use the exemption; communities that rely on seasonal recreation may see shifts in compensation practices and labor availability.
Department of Labor and courts: DOL will continue to enforce the FLSA and may face new classification disputes and challenges interpreting terms like "primarily engaged" and the receipts seasonality test; courts may be asked to resolve contested applications.
Workers’ advocates and unions: May oppose the exemption as reducing worker protections and earnings; could seek state protections, collective bargaining, or litigation to preserve overtime pay for affected workers.
Overall effect: The bill narrows federal wage-and-hour coverage for a clearly defined set of outdoor recreation jobs when those jobs occur at businesses that are short‑season or demonstrably highly seasonal. The likely practical outcome is lower employer overtime cost but increased risk of lower earnings for affected employees and increased need for clear recordkeeping and legal interpretation.
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Referred to the House Committee on Education and Workforce.
Introduced May 19, 2025 by Burgess Owens · Last progress May 19, 2025
Referred to the House Committee on Education and Workforce.
Introduced in House