WASHINGTON—House leaders continue to be urged by both credit union trade organizations to delay the Labor Department’s overtime rule so businesses will have more time to comply.
One pending piece of legislation, HR 6094, the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act, would delay the current rule’s implementation deadline of Dec. 1, pushing it to June 1, 2017.
“NAFCU remains concerned that the DOL’s proposal fails to adequately meet the needs of small and not-for-profit businesses, such as credit unions,” wrote Executive Vice President of Government Affairs and General Counsel Carrie Hunt in a letter to House Speaker Paul Ryan (R-WI) and Minority Leader Nancy Pelosi (D-CA). “Most small to mid-sized community-driven credit unions do not have the ability to comply with such a large compensation increase by the time the new DOL rule goes into effect without facing a significant burden.”
The Labor Department finalized the overtime rule in May. The rule raises from $23,660 to $47,476 the maximum salary for employees eligible for overtime pay under the Fair Labor Standards Act.
While NAFCU said it believes all American workers should be granted access to fair pay, the association has raised concerns that the rule fails to adequately consider geographic salary differences or provide exemptions for non-salary-based employee advancement opportunities, such as travel time for conferences or training opportunities.
CUNA president and CEO Jim Nussle said the trade association has concerns with the DOL’s changes to the Fair Labor Standards Act that increases the threshold of overtime pay eligibility by more than twice the current rate.
“This change will have unintended negative consequences for credit unions, including disproportionate impacts on credit unions in non-metropolitan areas and on smaller credit unions,” wrote Nussle in a letter to Ryan and Pelosi. “The Department's rule will magnify the regulatory burdens and constraints credit unions already face, particularly since 35% of all credit unions have no employees making salaries over the DOL's threshold. Furthermore, the rule will negatively impact credit union members, particularly if the credit unions are forced to limit services as a result of changed employment situations or the inability to hire full-time employees. This legislation is critical to ensure that the DOL more fully assesses the severe impacts of this rule, particularly on small credit unions.”