The Department of Labor (DOL) will publish its final rule Wednesday regarding employees’ eligibility for overtime pay--a rule which CUNA believes will have unintended negative consequences for credit unions, particularly smaller credit unions and those in non-metropolitan areas.
The DOL’s final rule would increase the threshold to be eligible for overtime pay by more than twice the current rate, moving the cut-off up to $47,476 from the current $23,660.
“We are obviously disappointed but not surprised by the final overtime rule,” said Ryan Donovan, CUNA chief advocacy officer. “America's credit unions work every day to improve the financial livelihood of their members--more than 105 million strong. Nevertheless, the finalized changes add to the regulatory burden that credit unions face and will impair their ability to provide affordable financial services to millions of Americans.”
CUNA is concerned that credit unions could be forced to limit services as a result of changed employment situations or the inability to hire full-time employees. CUNA sent a letter last week to the Senate Committee on Small Business and Entrepreneurship in advance of its hearing, and it has supported the Protecting Workplace Advancement and Opportunity Act (S. 2707/H.R. 4773), which would require the DOL to more fully assess the impact of this rule, especially on smaller entities.
Further analysis will be available from CUNA on its Removing Barriers blog.