ABA Urges OMB to Make Changes to DoL’s Proposed Overtime Rule

ABA senior staff, together with incoming Texas Bankers Association President and CEO Jim Purcell, met with staff from the Office of Management and Budget and Department of Labor on Wednesday to reiterate strong concerns about the DoL’s proposed overtime rule, which raises the overtime pay exemption threshold from $23,660 to $50,440.

The groups communicated the negative effects the proposal would have on banks and their employees across the country, pointing out that the rule fails to take into account regional differences in cost of living. They also expressed concerns over the rule’s proposed indexing mechanism that would allow DoL to annually update the salary threshold.

ABA has been working aggressively on this issue to collect banker feedback and communicate the rule’s impact on community banks. OMB approval is the last step before the rule can be finalized, which could occur as early as July 2016.