US DOL Proposes Exempt Employee Thresholds

March 11, 2019 at 9:25 am Leave a comment

Here we go again. Few issues have twitter-pated the credit union industry in recent years as much as the Obama Administration’s proposal to raise the salary threshold required to classify an employee as exempt. The regulations never took effect and are currently subject to an induction issued by a Federal District Court in Texas.

Late last week, the DOL issued a new notice of proposed rulemaking for exempt employee classification. Under the proposal, salary levels as a matter of federal law would increase from $455 to $679 per week. Keep in mind however that salary is just one element which must be satisfied to classify an employee as exempt. New York has its own thresholds for classifying employees as exempt as a matter of state law. In addition, those vary by region.

When the Obama Administration came out with its proposal, it forced many credit unions to reexamine how they had been classifying employees. I’m assuming that many of you won’t find this new round of regulations as challenging but you probably should sit down and take a look at what impact the proposal could have on your workforce.

Show Me the Money

In case you missed it, the NCUA has approved a $160.1 million equity distribution from the National Credit Union Share Insurance Fund which will be paid out to credit unions in the 2nd quarter. The current normal operating level is 1.38% but at the end of 2018 the fund stood out 1.39%. The distribution reflects the amount of money above the operating level. According to NCUA, credit unions have received nearly $900 million in Share Insurance Fund distributions since 2017.

Entry filed under: New York State. Tags: , .

Three Things To Know Before You Head To DC Time To Update The BSA

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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