New Federal Overtime Regulations – What You Need to Know

The Department of Labor has released proposed regulations which will significantly change the application of overtime exemption tests for community banks. The new standards include raising the minimum salary threshold to $679 per week ($35,308 annually). The proposed regulations do not envision any refinements to the existing “duties” tests associated with the white collar exemptions. The release also contains other practical changes to the exemptions, impacting highly compensated employees, permitting credits for certain incentive payments, and providing for a more structured-periodic review of these thresholds.

In addition to the proposed regulations, we are seeing positive developments in terms of Opinions being issued by the Wage & Hour Division. The agency recently issued an Opinion Letter addressing community work by employees, which is very relevant to our industry. The agency is also considering an Opinion Letter Request addressing the exempt status of mortgage and consumer lenders.

It is widely expected that these regulations will be finalized by the end of 2019, and will become effective sometime in the first quarter of 2020. While these changes will not have nearly the disruptive effect of the Obama administration final regulations, these changes will require attention and provide us an opportunity to reconfirm compliance across our organizations.

This presentation specifically addresses how the proposed regulations impact the banking industry, what preparation steps would be advisable, updated enforcement guidance from the Wage & Hour Division, and reference to detailed self-audit exemption checklists.

Highlights

  • What are the key changes contemplated by the proposed regulations
  • What positions will most likely be impacted given the new salary and compensation thresholds
  • What is the likely timetable for these regulations to be finalized and implemented
  • What preparations are advisable in anticipation of these refinements
  • What recent guidance has been issued by the Wage & Hour Division which applies to bank industry positions
  • What are we seeing in terms of enforcement activity by the DOL, state agencies, and plaintiffs’ lawyers

Who Should Attend?

HR, senior leaders, compliance, audit and bank counsel.