WASHINGTON (11/16/15)--A new U.S. Department of Labor (DOL) rule on overtime pay eligibility may be coming out later than expected and may not materialize until late 2016 (The Wall Street Journal Nov. 12).
Employers have been scrambling in anticipation of the rule being finalized and effective by the end of this year. Solicitor of Labor Patricia Smith, it was reported, said the final regulation is taking more time to draft because of the volume of comments received and because of the complex nature of the rule change.
Last summer, DOL proposed to raise the salary limit for those eligible for overtime pay to $50, 400--more than twice the current $23,660 cap. The change would make millions more working Americans eligible for overtime pay.
CUNA has warned DOL that its proposal would affect a substantial portion of credit union employees, particularly at smaller credit unions and those in rural or underserved areas.
Credit unions that have to limit work hours for their employees, due to the rule change, may offer fewer products and services, and focus only on the basic needs of members, CUNA said in a comment letter. “This may impede efforts to expand credit union products or service offerings, and inhibit innovation.
"Credit unions may be stuck navigating how to operate in the same way at a higher cost, without adding any additional value to members.”
A recent Credit Union Magazine article offered credit unions tips on how to prepare for the DOL rule on overtime.