The American Bankers Association today wrote to the House Small Business Committee urging Congress to block the Department of Labor’s final overtime rule from taking effect. The rule — which increased the salary level used to determine whether employees are exempt from overtime pay under the Fair Labor Standards Act from $23,660 to $47,476 — is set to take effect on Dec. 1.
The association reiterated its concerns that the rule imposes a “one-size-fits-all” standard on employers nationwide, with no regard to the economic and cost of living differences between states. Despite multiple meetings between ABA and member bankers with the DOL and the Office of Management and Budget during the rulemaking process, the final rule granted only a “token reduction” to the salary threshold and moved the annual automatic update of the threshold to every three years.
ABA encouraged lawmakers to support H.R. 4773, the Protecting the Workplace Advancement and Opportunity Act. The bill would nullify the rule and require the DOL to conduct a detailed economic analysis prior to making dramatic changes to federal overtime pay requirements.