CUNA wrote Thursday in support of the Labor, Health and Human Services, Education and Related Agencies Appropriations Act for Fiscal Year 2017 (HHS), which contains regulatory relief provisions. The House Appropriations Committee approved the bill Thursday by a 29-19 vote.
“Overly burdensome and costly regulations mean that credit union members are not able to fully access the high-quality, affordable and safe financial services that credit unions provide,” wrote CUNA President/CEO Jim Nussle to House Appropriations Committee leadership.
Specifically, the HHS bill would prevent any funds from being used by the Department of Labor (DOL) to implement, administer or enforce its final overtime rule. The rule, finalized in May, changes the salary threshold to qualify for overtime to $47,476, up from $23,600 annually.
CUNA believes the rule not only creates regulatory burdens for credit unions, since a disproportional percentage of their employees are swept into the new threshold, but it will also create unintended negative consequences for those it aims to help, as well as credit union members.
“Credit unions in rural and underserved areas, as well as small credit unions particularly, will face compliance and regulatory burdens as a result of the rule,” Nussle wrote. “As such, we believe this legislation is appropriate until the DOL provides a rule that impacts a more reasonable percentage of credit union employees, has a more proportional cost benefit analysis, and has fewer unintended consequences.”