Today we sent a pair letters to both chambers of Congress regarding the Department of Labor's proposed overtime pay rule. We thanked Senators Tim Scott and Lamar Alexander, and Representatives Tim Walberg and John Kline, for their bills (S. 2770 and HR 4773) which would ensure that the Department of Labor provide further analysis about proposed changes to the Fair Labor Standards Act that would increase the threshold of overtime pay eligibility, before the agency finalizes the changes. Last September, we submitted a comment letter to the DOL expressing our concerns with this proposed rule. 

We believe some of these proposed changes will have unintended negative consequences for credit unions, including disproportionate impacts on credit unions in non-metropolitan areas and on smaller credit unions. The Department's proposal would magnify the regulatory burdens and constraints credit unions already face, particularly since 35% of all credit unions have no employees making salaries over the DOL's proposed threshold.  

Furthermore, the rule has the potential to negatively impact credit union members, particularly if the credit unions are forced to limit services as a result of changed employment situations or the inability to hire full-time employees. 

The bills that we are now supporting would require the DOL to further assess the severe impacts of this sweeping rulemaking, particularly on small credit unions.  We appreciate the leadership of Chairmen Alexander and Kline, Senator Scott, and Representative Walberg, and will work with both chambers as this legislation moves forward.