New Bill Exempts Seasonal Outdoor Guides from Federal Minimum Wage and Overtime Protections

The newly proposed Outdoor Recreational Outfitting and Guiding Act is short, but it packs a serious punch for anyone working as a guide or outfitter in the outdoor recreation industry. Essentially, this bill carves out a brand-new exception under the Fair Labor Standards Act (FLSA)—the federal law that guarantees minimum wage and overtime pay—specifically for employees working in outdoor recreational outfitting or guiding services (SEC. 2).

The Fine Print: Who Loses Wage Protections?

This isn't a blanket exemption for all guides. The exemption only applies if the employer meets one of two specific tests designed to capture seasonal or revenue-variable businesses. First, if the business doesn't operate for more than seven months in a calendar year, its employees can be exempt from federal minimum wage and overtime rules. Second, if the business operates year-round but its revenue is highly seasonal, it can also qualify: specifically, if its average income during any six-month period is less than 33 1/3 percent of its average income during the other six months of that year (SEC. 2).

Think about a white-water rafting guide in Colorado or a fishing outfitter in Alaska. If their employer meets either the seven-month time limit or the seasonal revenue test, that employer would no longer be required to pay them the federal minimum wage or time-and-a-half for working more than 40 hours in a week. This is a huge shift, as it effectively removes the federal wage safety net for thousands of workers whose jobs are already physically demanding and often require long, unpredictable hours during peak season.

What This Means for Your Paycheck

For the business owner, this bill means significant relief from payroll costs and administrative burdens, especially for those operating on razor-thin margins in highly seasonal markets. For the employee, however, the impact is immediate and potentially severe. If you’re a guide who routinely works 60 hours a week during the summer rush, that extra 20 hours of overtime pay could be the difference between making ends meet and falling behind. Under this new rule, your employer could legally pay you a flat hourly rate for all 60 hours, or even less than the federal minimum wage, depending on state laws. This could translate to a major pay cut for dedicated, hard-working professionals in the industry.

The Catch: Potential for Abuse

While the goal is likely to help small, truly seasonal businesses survive, the language opens the door to potential complications. The revenue test, which compares average income over two six-month periods, is vague enough to require careful accounting. Businesses might attempt to structure their operations or report revenue in a way that just barely qualifies for the exemption, allowing them to skirt federal wage laws while still operating close to year-round. Since the changes apply to workweeks beginning on or after the day the law is enacted (SEC. 3), guides and outfitters need to pay close attention to their employment contracts and pay stubs immediately if this bill becomes law.