Bill looks to exempt outfitters and guides from minimum wage rule

A new bipartisan bill proposed late last month by U.S. Sens. Steve Daines (R-Mont.) and Kyrsten Sinema (D-Ariz.) hopes to support the outdoor economy by exempting outfitters and guides from what outdoor industry officials say are burdensome overtime requirements.

The new bill was proposed in response to Executive Order 14026, which was issued by President Biden on April 27, 2021 and went into effect Jan. 30 of this year. The order requires all new federal contracts to incorporate a minimum wage of $15 per hour for most employees and a minimum wage of $7.90 per hour for tipped workers. The order also includes plans to raise the minimum wage annually and phase out the lower minimum wage for tipped workers by 2024.

Proposed by Daines and Sinema April 28, the new legislation hopes to further amend the Fair Labor Standards Act of 1938 to stipulate that businesses that are closed for seven months or more every year or that make more than two-thirds of their income in less than six months are exempt from the minimum wage rules in the executive order.

While the White House says the order is intended to promote the economy, state guiding organizations are seeing the situation differently and have been fighting the order since it was enacted earlier this year. They are hoping the new proposed legislation will save them from minimum wage rules that could cripple their industry.

“Montana Outfitters and Guides Association is proud to support this industry saving legislation that protects outfitters and guides from out-of-touch regulations that would have put many Montanans out of business,” said Mac Minard, Executive Director Montana Outfitters and Guides Association. “This bill is critical to protecting sportsmen and recreation access, and jobs, particularly in rural communities where opportunities are limited.”

THE ISSUE of a federal minimum wage for outfitters and guides stems back to the Obama administration and Executive Order 13658, signed in Feb. 2014 and enacted Jan. 1, 2015.

Quite similar to the new order, Obama’s Executive Order 13658 instituted a minimum wage for federal contract workers of $10.10 per hour.

Outfitters and guides were able to successfully lobby against the rule and were granted an exemption by the Trump administration with the issue of Executive Order 13838 in May 2018, but are once again fighting the same battle.

“Thanks to Montana’s outfitters and guides, folks from all over the world come to Montana to hunt, fish and explore our great outdoors, and as a result, Montana’s outdoor economy is thriving,” Daines said in a press release. “It’s critical we pass my bipartisan bill to help protect Montana sportsmen jobs by cutting burdensome red tape that limits Montana workers and adds unnecessary burdens to Montana small business owners.”

“We’re boosting Arizona’s outdoor recreational tourism industry, fueling job creation and expanding recreational opportunities across our state,” Sinema added.

Many business owners say they knew nothing of the minimum wage changes until the Colorado River Outfitters Association and Arkansas Valley Adventures sued the federal government in December in an attempt to block the rule.

The groups argued that permits to operate on federal lands don't make them federal contractors offering services to the federal government, an argument that was rejected by a federal judge on Jan. 29.

ONE POSSIBLE saving grace for outfitters and guides is that the new rule only applies to new contracts or those being renewed, meaning existing contracts would be unaffected. For new businesses and those with expiring contracts, the new rule could spell disaster.

“Now more than ever, we need to make sure that outdoor recreation experiences remain accessible and affordable to all,” America Outdoors Executive Director Aaron Bannon said. “Through this bill, Senator Daines and Senator Sinema are working to ensure that seasonal outfitters can continue to provide transformative outdoor experiences without facing exorbitant operating costs.”

The new bill was referred to the Committee on Health, Education, Labor, and Pensions, where it awaits further study.

Reporter Jeremy Weber may be reached at 406-758-4446 or jweber@dailyinterlake.com.