ICBA and other groups asked the Labor Department to extend by 60 days the comment period on its proposal to increase the number of employees who are entitled to overtime compensation.
Joint Letter: The groups said the proposed rulemaking includes a nearly 55% increase in the minimum overtime salary threshold and automatically updates the threshold every three years, which would have a massive impact on the economy. They said additional time is needed to analyze the proposal and fully assess its potential impact.
Overtime Proposal: The Labor Department’s proposed rulemaking would raise the threshold for exempt salaried employees from $35,568 to $55,068 annually, requiring businesses to extend overtime pay to a greater number of executive, administrative, and professional workers.
Background: The Labor Department in 2019 issued an overtime final rule that was based on its 2004 overtime methodology, as advocated by ICBA. That final rule—which came after a federal judge in 2017 struck down a rule issued in 2016—increased the salary level test from $23,660 to $35,568 per year and the total annual compensation level for "highly compensated employees" from $100,000 to $107,432 per year.
Roundtable Today: The Small Business Administration’s Office of Advocacy today is hosting the second of two roundtable discussions on the proposal. Banks with less than $850 million in assets—which are defined as small businesses by the SBA—are invited to join the roundtable, which is scheduled for 1 p.m. (Eastern time).
