ARLINGTON, Va.—NAFCU has reiterated its concerns that the Department of Labor’s Overtime Rule will add to credit unions’ regulatory burden and limit their ability to serve their communities.
In a letter to the House Committee on Education & the Workforce in advance of Thursday’s hearing on the rule, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt’s stated, “We are concerned that the effect of nearly doubling the minimum overtime exempt salary would disproportionately burden credit unions in underserved and non-urban communities. Additionally, NAFCU has concerns that the DOL’s proposal fails to adequately consider the needs of small businesses and non-profit organizations, including credit unions around the country, which operate with extremely low financial margins in a highly competitive service-driven marketplace.”
Hunt added that the DOL’s rule makes it “incredibly difficult for credit unions to bear the travel, lodging, registration, and other costs of sending employees to trainings and conferences alongside paying for overtime hours. Additionally, many credit union employees happily volunteer their time and their services to the betterment of community programs. This change to the FLSA could negatively impact a credit union’s ability to ask their employees to volunteer for community events and could adversely affect a credit union’s ability to serve its community."