Removing Barriers Blog

House Labor/HHS/Education Appropriations Bill Contains Regulatory Relief Provisions
Posted July 14, 2016 by CUNA Advocacy

This week we sent a letter to Capitol Hill in support of the Labor, Health and Human Services, Education and Related Agencies Appropriations Act for Fiscal Year 2017 (HHS), which contains regulatory relief provisions. The House Appropriations Committee approved the bill by a vote of 29-19.

Specifically, the HHS bill would prevent any funds from being used by the Department of Labor (DOL) to implement, administer or enforce its final rule on Overtime Pay. The rule, which was finalized in May, changes the salary threshold to qualify for overtime to $47,476, up from $23,600 annually.

Our advocacy team has been working intensely on this issue over the past several months, sending several letters to legislators and submitting a comment letter to the Department of Labor.

We believe that this rule will create even more regulatory burdens for credit unions, since a disproportional percentage of credit union employees will be swept into the new threshold.  Due to its scope and complexity, this rule will also create unintended negative consequences for those it aims to help, as well as credit union members.

Small credit unions, and those operating in rural and underserved areas will have particular difficulty complying with this rule. As such, we believe this recent legislation is appropriate until the DOL provides a rule that impacts a more reasonable percentage of credit union employees, has a more proportional cost benefit analysis, and has fewer unintended consequences.