Last week, SCI’s Litigation team submitted a brief in the U.S. Supreme Court on behalf of outfitters and guides who will be harmed by labor regulations that ignore the realities of the outfitting industry.
In 2021, President Biden issued an Executive Order that raised the minimum wage for federal contractors to $15 per hour and required time-and-a-half for overtime hours (above 40 hours), despite Congress’ rejection of a similar proposal in 2020. The Order rescinded Executive Order 13838, issued by President Trump, which exempted seasonal outdoor recreational businesses operating on federal land from minimum wage and overtime obligations and recognized that a mandatory minimum wage and overtime requirement “threatens to raise significantly the cost of guided hikes and tours on Federal lands, preventing many visitors from enjoying the great beauty of America’s outdoors.”
In response, the U.S. Department of Labor (DOL) promulgated regulations that impose the minimum wage and overtime requirements for employees of providers of any permitted recreational activities on federal lands—everything from hunting to river rafting to horseback riding to other seasonal recreational activities.
Two river rafting companies challenged the Executive Order and the DOL’s regulations in federal court. The court denied a preliminary injunction, and the Tenth Circuit Court of Appeals affirmed. SCI filed a brief in the Tenth Circuit in support of the challenge.
The outfitters sought U.S. Supreme Court review. Last week, SCI filed a brief in the U.S. Supreme Court in support of the outfitters’ arguments. SCI’s brief highlights the damage that a $15 minimum wage and $22.50 overtime rate would have on the guided hunting industry. Most outfitters offer multi-day trips that quickly exceed a 40-hour week. They cannot replace specialized guides with additional shifts, especially in remote areas. Further, most guides wish to maximize their income during short operating seasons. They do not consider themselves to be “working overtime” and typically try to schedule as much work as possible, leaving themselves free to pursue other interests the rest of the year. The DOL regulations will ruin this system, with many outfitters unable to meet the new overtime requirements for their employees and no longer willing to train potential guides.
Worse, the DOL regulations reduce outdoor recreational opportunities for many Americans. Few people have the experience or means to spend a week, on their own, whitewater rafting down the Arkansas River or hunting for big game in the Frank Church Wilderness. Outfitters open the door to these experiences. Given the difficulty of hunting without a guide in some remote locations, and laws in some States that require non-residents to use guides to hunt, implementation of Biden’s Executive Order would effectively shut down access to public lands for many people. The DOL regulations will unnecessarily increase outfitters’ operating costs, which will shut them down or force them to raise prices. Higher prices mean many Americans will not be able to afford these experiences—especially as families already grapple with the effects of inflation and higher living costs.
SCI’s brief is just one means by which SCI aims to solve this problem. Earlier this year, SCI supported the Outdoor Recreational Outfitting and Guiding Act, H.R. 6128 and S. 2914, which follow the path set in President Trump’s Executive Order. The Act would exempt employees engaged in seasonal outdoor recreational outfitting or guiding services on federal lands from minimum wage and overtime obligations. Importantly, these employees are already typically compensated at or above minimum wage. But their pay structures include compensation from daily rates, room and board, training, and tips. The Act allows seasonal outfitting businesses to avoid unnecessary compliance costs and to keep their prices reasonable. Guides will remain employed, and tens of thousands of Americans who wish to enjoy affordable outdoor experiences will maintain access to federal lands.
A forced minimum wage and overtime requirement make no sense for seasonal outdoor recreational businesses.
SCI’s brief is available in the case Bradford v. U.S. Department of Labor, No. 24-232, in the United States Supreme Court.
