WASHINGTON (3/21/16)--A group of legislators have introduced a bill in the Senate and the House that would prevent the U.S. Department of Labor (DOL) from finalizing its proposal on overtime pay, a proposal the Credit Union National Association (CUNA) has significant concerns with. In its comment letter filed last September, CUNA said the proposal is “too extreme and will ultimately not achieve a better situation for many employees.”
The DOL’s proposal would raise the salary threshold to the 40th percentile, a change to a projected level of $970 a week ($50,440 a year) from $455 a week ($23,660 a year) in 2016 and establish a mechanism for automatically updating the minimum salary and compensation levels.
The bill, the Protecting Workforce Advancement and Opportunity Act, would:
CUNA is currently reviewing the text of the proposed legislation, and believes the proposal will especially harm small credit unions, as well as those in rural or underserved areas. CUNA has also asked the National Credit Union Administration to weigh in on the proposal’s regulatory burden.
According to the DOL’s most recent rulemaking agenda, the rule is likely to be finalized by July.