WASHINGTON—The Department of Labor (DoL) has appealed a federal judge's ruling that invalidated its 2016 overtime rule.
The rule would have increased the number of workers eligible for overtime pay by bumping the salary threshold from $23,660 to $47,476. The U.S. District judge in Texas who invalidated the rule questioned the DOL's authority to establish new salary thresholds to determine overtime pay eligibility.
Although the Trump administration doesn't support the overtime rule in its current form, it has appealed the decision so that the DOL can maintain its ability to establish overtime regulations. DOL Secretary Alexander Acosta has indicated he is supportive of increasing the salary threshold and sought public comment on the rule earlier this year to determine potential consequences, NAFCU noted.
NAFCU submitted a comment letter to the department in September, urging it to revise the rule with more flexibility and reasonable benchmarks to ensure the credit union industry isn't adversely affected by it.
In that letter, NAFCU Regulatory Affairs Counsel Ann Kossachev wrote that the 2016 overtime rule "would have posed risks to the stability and growth of credit unions nationwide." She also urged the DOL to consider geographical differences in salary instead of approaching the issue with a one-size-fits-all strategy.
NAFCU said will continue to monitor any changes to the overtime rule and its legal proceedings.