Print

CBAI Comment Letter Opposes Expansion of Overtime-eligible Employees

The U.S. Department of Labor (“DOL”) has proposed a dramatic increase that would more than double the salary threshold used when determining which employees are exempt from overtime pay mandates under the federal Fair Labor Standards Act (“FLSA”). In its comment letter opposing the proposed increase, CBAI emphasized the potential adverse impact on community bank earnings as well as the possibility that some employees might have to be dismissed or have their hours reduced if necessary to keep expenses under control; CBAI also noted that DOL’s proposal could have an anti-consumer effect if banks increase costs and fees charged to customers or reduce services in order to maintain adequate earnings in the face of any increased payroll expenses that might result from the DOL’s proposal. See Comment Letter.