CUNA has concerns about how the Department of Labor’s (DOL) overtime proposal may affect small credit unions and those in rural and low-cost areas, it wrote to the DOL in comments filed Tuesday.
The proposal would increase the salary level test—to $55,068 per year, up from the current $35,568 per year—to be exempt from overtime rate of pay for working more than 40 hours in a given week.
“A sizeable number of credit union employees’ salary ranges fall between the existing threshold and the proposed salary level test, which will magnify the cost burdens and time constraints credit unions are already facing in complying with the Department’s overtime rule,” the letter reads. “Ultimately, this rule could disproportionately burden small credit unions and credit unions in rural areas, and they may find it difficult to maintain the same level of service to their members when faced with heightened compliance burdens.
“CUNA urges the Department to consider whether a one-size-fits-all threshold national standard is appropriate given the limited resources available to smaller credit unions and rural credit unions who might be disproportionately impacted by the proposed salary level test threshold,” the letter adds.
CUNA is also concerned with: