News
New Employee Overtime Rules take Effect December 1, 2016 — 10/7/16
Oct. 17 webinar will address impact and preparation steps for CUs
In 2014, the U.S. Dept. of Labor (DOL) was directed to update the overtime regulations to reflect the original intent of the Fair Labor Standards Act, and to simplify and modernize the rules. As a result, the DOL issued new rules on May 18, 2016 that will increase the minimum salary level necessary for employees to be properly classified as exempt executive, administrative, and professional employees. The final rule will take effect on December 1, 2016 and could have an impact on credit union staffing including budgets.
CUNA asks for six month implementation delay
In the meantime, CUNA has asked the Congress to pass H.R. 6094, which would delay implementation of the new rules for six months in order to assess the impact on smaller institutions. In a letter to Congressional leaders, CUNA asserts the rule “will magnify the regulatory burdens and constraints credit unions already face, particularly since 35 percent of all credit unions have no employees making salaries over the DOL's threshold.” CUNA further contends that the rule will 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. This legislation is critical to ensure that the DOL more fully assesses the severe impacts of this rule, particularly on small credit unions. Passage of the bill is uncertain before the December 1 implementation date.
Who does it affect?
According to the DOL, the final rule increases the minimum salary level for "white collar" exempt employees. The DOL expects that fewer employees will meet the requirements to be exempt from overtime, and as a result, either will be entitled to receive overtime pay, or will have to receive a higher salary in order to remain exempt under the FLSA.
How you can prepare:
In anticipation of the new rules going into effect, the West Virginia Credit Union League is sponsoring a webinar on Monday, October 17 at 3:00 EDT. to help better prepare credit unions for the changes.
Topics to be covered:
-New rules regarding overtime exemptions
-Specific tests that must be satisfied for each type of overtime exemption, including the duties test
-Alternatives if an employee will no longer qualify as exempt from overtime pay
-Restructuring each employee’s compensation to achieve the same previous salary
-Controlling the hours worked to manage potential overtime costs
-How to notify employees about these new changes
Webinar takeaways:
-Chart comparing the current rules, the old proposed rules, and the new final rules
-DOL’s Guidance for Private Employers on Changes to the White Collar Exemptions in the Overtime Final Rule
-DOL’s Small Entity Compliance Guide to the Fair Labor Standards Act’s “White Collar” Exemptions
-Employee training log
-Quiz you can administer to measure staff learning and a separate answer key
Who Should Attend?
This informative session is designed for human resources personnel, managers, compliance officers, audit staff, budget personnel, and attorneys. Webinar registration information may be found here. League member credit unions under $20 million in assets are eligible for reduced pricing for the archived version of the webinar.
# # #