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NAFCU pens letter to DOL on overtime rule
NAFCU Senior Regulatory Affairs Counsel Amanda Smith Tuesday wrote to the Department of Labor (DOL) on its proposed rulemaking to change the thresholds and methods used to delimit overtime and minimum wage exemptions. The proposal would amend the DOL’s regulations implementing the Fair Labor Standards Act (FLSA) by increasing the minimum salary levels used for determining whether an employee is exempt from minimum wage and overtime pay rules.
In the letter, Smith called on the DOL to “accommodate compensation structures that promote the shared success of the credit union” and to consider the “unique rules that limit their ability to raise capital and absorb new labor costs.” She noted limits on loan interest rates, maximum maturities, and field of membership that limit expansion opportunities to fund increased labor costs.
Smith also highlighted NAFCU’s opposition to automatic adjustments to the salary level used for determining the applicability of minimum wage and overtime pay requirements. Under the DOL’s proposal, the salary level would be adjusted every three years. Smith wrote that NAFCU supports reviewing “the salary level on a regular basis through notice and comment rulemaking so that impacted parties may provide input to changes that directly affect them and their employees.”
NAFCU will continue to engage federal regulators and work to ensure credit unions have the most resources available to serve their members.