OVERTIME PAY REGULATION
- ICBA is concerned that the Department of Labor may issue 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.
- Any commissioned employee, including mortgage originators, should be exempted from overtime pay pursuant to the commissioned sales exemption under FLSA.
ICBA as well as other representatives of the financial industry have been meeting with the Department of Labor concerning the agency’s review of the overtime exemptions under the Fair Labor Standards Act (FLSA). ICBA is concerned that the DOL will issue rules severely restricting the number of employees who would be subject to FLSA administrative, executive and sales exemptions from overtime pay. 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