Removing Barriers Blog

CUNA Send Letter to Senate Small Business Committee Supporting Hearing on DOL Overtime Rule
Posted May 11, 2016 by CUNA Advocacy

Today, the Senate Small Business Committee held a hearing on a proposed rule by the Department of Labor regarding overtime eligibility for salaried employees. The rule, which proposes changes to the Fair Labor Standards Act to increase the threshold for overtime pay eligibility by more than twice the current rates, could have significant unintended negative consequences for credit unions, particularly smaller credit unions and those operating in rural areas. We sent a letter to the committee thanking it for bringing much needed attention to the consequences of this proposed rule. 

We also support legislation in the House (H.R. 4773) and Senate (S. 2707) to address potential problems caused by the rule. The “Protecting Workplace Advancement and Opportunity Act" would:

  • Nullify the proposed rule
  • Require the DOL to first conduct a comprehensive economic analysis on the impact of mandatory overtime expansion to small businesses, nonprofit organizations and public employers
  • Prohibit automatic increases in the salary threshold
  • Require that any future changes to the duties test must be subject to notice and comment.