The U.S. District Court of The Eastern District of Texas ruled against the Department of Labor’s (DOL) overtime rule Thursday, a rule that CUNA has significant concerns with. An emergency injunction against the rule was issued in November 2016, stopping the rule from becoming effective Dec. 1, 2016.
The rule would have increased the threshold for overtime pay eligibility and added a number of compliance burdens, including a recalculation of salaries at a fixed percentile of 40% every 3 years.
CUNA and credit unions had concerns about the rule’s increased burdens, particularly in rural and underserved areas. About 35% of all credit unions have no employees making salaries over the DOL’s threshold.
CUNA supports the creation of a more balanced rule that produces fewer unintended consequences, and will respond to a DOL request for information about the rule.
Additional details on the rule and the court’s decision can be found on CUNA’s Removing Barriers Blog.