Texas court delays Labor's overtime rule
A federal judge in Texas on Tuesday granted a preliminary injunction delaying the Department of Labor's overtime rule, which was set to go into effect Dec. 1.
"This is a welcome delay for many small businesses, especially credit unions, that would not have been able to integrate this immense increase without impacting the services they provide," said NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt. "NAFCU and our members believe that this rule would have created major unintended consequences and obstructed growth opportunities for many white collar workers. Ultimately, in its current form, this rule could hurt the people it was trying to help."
The injunction by Judge Amos Mazzant of the Eastern District of Texas in Sherman, Texas, is only temporary, but it is possible that he will side with 21 state attorneys general that claim the overtime rule will increase costs and force the cut of essential government services.
The Department of Labor's rule raises from $23,660 to $47,476 the salary threshold at which employees are eligible for overtime pay under the Fair Labor Standards Act.
The court concluded that Congress intended the "executive, administrative, and professional" exemption, to which the Department of Labor's rule applies, should depend on an employee's duties rather than the employee's salary.
The court also noted that the states offered many examples of the significant costs they will incur due to the Department of Labor's rule, including "seven state officials who estimate it will cost their respective states millions of dollars in the first year to comply with the Final Rule."
This preliminary injunction "preserves the status quo while the Court determines the Department's authority to make the Final Rule as well as the Final Rule's validity," the court said.
Congress has also taken up legislation that would delay the overtime rule. In September, the House voted 246-177 to delay the rule's implementation by six months. An identical bill was introduced in the Senate. President Barack Obama has promised to veto the legislation.
Earlier this month, NAFCU wrote several House members to express support of their bill to phase in salary changes regarding the Department of Labor's overtime rule. The "Overtime Reform and Enhancement Act (OREA)" (H.R. 5813) would phase in the rates of pay for executive, administrative, professional, outside sales and computer employees, which NAFCU said would be beneficial to credit unions.
Add to Calendar 2023-11-30 09:00:00 2023-11-30 09:00:00 Safeguarding Credit Unions with Threat Intelligence Listen On: Key Takeaways: [1:01] What is threat intelligence, and why is it important to CUs? [2:14] What are threat intelligence feeds, and what role do they play in strengthening CUs? [4:41] Leveraging threat feeds and integrating intelligence into tools is crucial. [6:35] Learn what threat CUs should be most concerned about. [7:39] Phishing is ever-evolving, and user awareness is critical. [10:43] Learn how Defense Storm uses feeds to protect its customers. [13:28] Threat intelligence is not as complicated as some think; initiation can be easy through Slack, discussions, and a reporting culture. Web NAFCU firstname.lastname@example.org America/New_York public
Add to Calendar 2023-11-28 09:00:00 2023-11-28 09:00:00 Growing Creatively & Innovatively in 2024 Listen On: Key Takeaways: [0:58] What can credit unions do to best prepare themselves for 2024? [2:12] Although he sees a glimmer of hope, Jack points out that the liquidity crisis and slow prepayment speeds hamper rapid recovery. [5:22] We discuss how credit unions seek low loan growth through member-centric strategies such as second mortgages and home improvement lending. [7:34] Credit unions are leveraging advancing technology for member-focused engagement. [9:31] How will technology continue to evolve and affect credit unions? [11:43] What role does AI play in innovative growth? [14:14] Credit unions adopt technology for efficiency, enabling staff to focus on personalized member interactions, especially with younger generations. [17:14] Closing thoughts, emphasizing competition against banks and fintech for younger generations. Web NAFCU email@example.com America/New_York public
Get daily updates.
Subscribe to NAFCU today.