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| NAFCU Offers Ways to Reduce CUs' Burden under Overtime Rule |
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In response to the Department of Labor's (DOL) revised overtime rule proposal, NAFCU's Andrew Morris said it is "a substantial improvement" over the previous rule and that the proposed salary level is "reasonable."
Morris, NAFCU's senior counsel for research and policy, noted that the proposed rule includes a NAFCU-sought recommendation to remove the requirement for automatic, three-year adjustments to the salary level. He also asked that the DOL consider other ways to reduce credit unions' burden under the rule, including:
• creating a small entity compliance guide;
• adjusting the 10 percent limit of the standard level for other compensation such as nondiscretionary bonuses and incentive payments made on an annual or more frequent basis "to accommodate a more diverse range of incentive programs";
• assessing the impact of the proposal on workforce development resources at highly regulated small institutions, such as credit unions, before proceeding with future salary level adjustments; and
• conducting an assessment of the four-year review of the salary level shortly after the first adjustment cycle.
"We ask that the DOL carefully consider the not-for-profit mission and cooperative structure of credit unions before making future adjustments to the standard salary level. We also ask that the DOL consider additional mechanisms for preserving the viability of small credit unions who serve as a vital source of credit in their communities but face significant challenges when adapting to any major regulatory change," Morris concluded.
Copyright 2019. NAFCU. (link) |
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