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Proposed rule to amend overtime could affect credit unions.




WASHINGTON—The Department of Labor (DOL) has issued a proposed rule to amend overtime rules under the Fair Labor Standards Act (FLSA).

  • Increases the minimum salary required for an employee to qualify for overtime exemption from $23,660 to $35,308 per year
  • Increases the total annual compensation requirement for highly compensated employees (HCE) from the currently-enforced level of $100,000 to $147,414 per year
  • Establishes a four-year, periodic review of the salary threshold
  • Allows the use of nondiscretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10% of the standard salary level

As covered employers, virtually all credit unions are subject to the department's overtime rules and could be impacted, said NAFCU, which noted the proposed rule makes the following substantive changes:

 Under the proposed rule, credit unions could be impacted by changes to the salary level applicable to the executive, administrative and professional (EAP) overtime exemption and adjustments to the compensation requirement for the HCE exemption, stated NAFCU, which has urged the department to revise the overtime rule with “more flexibility and reasonable benchmarks to ensure the credit union industry isn't adversely affected by it.”


See you in Clearwater Beach, FL 10/1-4/2019

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