Removing Barriers Blog

Department of Labor Indicates that its Final Rule on Overtime Pay will be Delayed
Posted November 12, 2015 by CUNA Advocacy

The Wall Street Journal reported that officials at the Department of Labor (DOL) indicated during an American Bar Association meeting this week that the agency’s rule on overtime eligibility isn’t likely to appear before “late 2016.”

The article also stated that about 270,000 people and organizations submitted comments to DOL on the proposed change, more than three times the number received when the rules were last changed in 2004.

We submitted comments to the DOL in September. In our comment letter, we argued that the proposed salary threshold for overtime is not appropriate for credit union employees in general, but may be particularly inappropriate for small credit unions and those in rural and underserved areas.

This delay could be significant if it is for the purpose of revaluating the proposals. Additionally, this change in timeframe could potentially push the rule into a new presidential administration. We will continue to follow any new developments on this proposed rule, which we have estimated will have a significant impact on credit unions since a substantial percentage would fall into the overtime pay salary threshold under the new proposed rule.