CUNA continues to push for a delay in the Department of Labor’s (DOL) overtime rule so the agency has time to fully assess the severe impact the plan would have on credit unions, especially smaller ones and those in non-metropolitan areas.
In a letter to House leadership Wednesday, CUNA urged lawmakers to pass H.R. 6094 if it comes up for a vote this week, as expected. That bill would impose a six-month delay in the rule’s effective date, currently set for Dec. 1.
The DOL’s overtime rule, finalized last May, raises the threshold for eligibility for overtime pay to more than twice the current rate, moving the cut-off to $47,476, up from the current $23,660.
In its letter to House Speaker Paul Ryan (R-Wis.) and House Minority Leader Nancy Pelosi (D-Calif.), CUNA warns the threshold change will magnify the regulatory burdens and constraints credit unions already face. That, in turn, has the potential to 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.
“The legislation is critical to ensure that the DOL more fully assesses the severe impacts of this proposal, particularly on small credit unions, before moving forward with implementation of the final rule,” CUNA President/CEO Jim Nussle concluded in his letter.
CUNA Deputy Chief Advocacy Officer Eli Joseph noted, “We know that there likely is not enough time left in the congressional calendar this election year to get this bill through both the House and Senate, but continued congressional focus on this issue could send a strong signal before the December deadline.”