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.
Although these changes are an improvement, this is still an increase of more than 100 percent in the salary threshold and…will not alleviate the harm this rule will do to community banks and their employees. Thus, we believe it is clear that the secretary [of labor] is not willing to reconsider the rule in a meaningful way without congressional action.
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.
Read the letter.