OVERTIME PAY REGULATION
- ICBA is concerned that the Department of Labor will adopt final regulations under the Fair Labor Standards Act (FLSA) that would inappropriately expand the number of employees subject to overtime pay.
- ICBA supports DOL clarifying the various FLSA exemptions from overtime pay but opposes significantly restricting them so that fewer administrators, executives and sales commissioned staff would be exempted from overtime pay. In particular, ICBA opposes a high nationwide salary test for the exemptions.
- Any commissioned employee, including mortgage originators, should be exempted from overtime pay pursuant to the commissioned sales exemption under FLSA.
ICBA is concerned that the DOL will issue final rules severely restricting the number of employees who would be subject to FLSA administrative, executive and sales exemptions from overtime pay. In particular, ICBA is concerned about the proposal to subject most employees who make less than $50,440 to overtime requirements.
ICBA filed a joint comment letter with the American Bankers Association, the Financial Services Roundtable, The Clearing House, and the Mortgage Bankers Association with regard to the Department of Labor regulations concerning the proposed rule. While ICBA supports clarifying the various FLSA exemptions, ICBA opposes any significant expansion of the number of employees subject to overtime pay. Under current rules, exempt employees must have duties that are primarily managerial, administrative, or professional. Reclassifying such employees as hourly would limit their flexibility, bonus or incentive pay availability, and change in an intangible manner the character of their jobs, their professional incentives, and even their career path. Moreover, broadening the number of community bank employees subject to overtime pay would not only increase personnel costs but also administrative costs, since it would force community banks to track the overtime hours of more employees. ICBA believes that mortgage originators should be exempted from overtime pay under the commissioned sales exemption under FLSA.
Staff Contact: Chris Cole