The American Bankers Association today wrote to Rep. Kurt Schrader (D-Ore.) in support of his Overtime Reform and Enhancement Act, which would provide a gradual, three-year phase-in for the Department of Labor’s controversial overtime rule. While Schrader’s bill would not stop the DoL overtime rule — which doubles 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 — it would provide the transition time necessary for employers to make the switch.
“Our members believe that DoL’s increase to the salary threshold in the first year is simply too much too soon,” ABA said. “This drastic increase will present significant challenges for our members that provide banking services in lower cost-of-living areas of the country, particularly community banks.”
Under Schrader’s bill, the overtime threshold would rise over three years, with the first increase reaching $35,984 in December 2016. It would also stop the final rule’s automatic salary threshold increases. ABA continues to support Protecting Workplace Advancement and Opportunity Act, which would require DoL to fully examine the rule’s impact before implementing the final rule, and urges all bankers to send letters to Congress in support.