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The U.S. Department of Labor released its rewrite of the Obama administration's "overtime rule"-which was adopted in 2016 but never took effect due to a federal judge's ruling later that year.  Comments on the proposal will be due 60 days after publication in the Federal Register.
In the proposed rule, DOL set the salary level at which an employee could be exempted from federal overtime and minimum wage requirements at $679 per week, or $35,308 per year. These figures reflect the methodology adopted by the George W. Bush administration in 2004-which set the salary level at the 20th percentile of earnings of full-time salaried workers in the lowest-wage census region and in the retail sector-updated for projected 2020 salary data.
DOL's proposed salary level reflects a significant reduction from the salary level adopted by the Obama administration, under which far more employees would have been treated as hourly earners had the 2016 rule gone into effect. DOL also proposed that the salary level be updated every four years through notice-and-comment rulemaking. DOL did not propose any changes to the "duties test."
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Agencies Policy Statement on Examination Reports
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As part of its ongoing exam modernization initiative, the Federal  Financial Institutions Examination Council issued a policy statement
aimed at promoting clarity and consistency of reports of examination. The policy statement-which is intended to reduce regulatory burden for community banks-includes principles that "set forth minimum expectations of what should be included in all ROEs."
Among other things, the principles establish that all ROEs should present conclusions and issues in order of importance; document the condition and risk profile of the institution; discuss the adequacy of the institution's risk management practices; and document issues of supervisory concern or warranting prompt corrective action.
Concurrently, the agencies are rescinding their 1993 Interagency Policy Statement on the Uniform Core Report of Examination.
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Call Report Update Finalized
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The federal banking agencies finalized revisions to the call report. The updates incorporate the Current Expected Credit Loss  methodology as well as S. 2155 reforms to the reporting of high-volatility commercial real estate exposures and reciprocal deposits.
The CECL reforms would be phased in between March 31, 2019,
and Dec. 31, 2022. The reporting changes on HVCRE exposures and reciprocal deposits take effect as of the June 30, 2018, report date.
More from FDIC >>
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CECL's Negative Consequences for Consumers, Community Banks
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Rep. Blaine Luetkemeyer (R-Mo.) warned of the negative consequences that the Financial Accounting Standards Board's
 current expected credit loss standard could have on community banks and consumers if implementation moves forward. In an American Banker
op-ed, Luetkemeyer pointed out that "CECL threatens to eliminate some lending services and restrict access to credit, particularly for low-income families.
Recounting a recent conversation with a Midwestern banker, Luetkemeyer added that "for smaller institutions, the banker said in no uncertain terms that CECL has no benefit for their customers nor would it have any bearing on the safety and soundness of their institution, but it will present onerous operational challenges."
Luetkemeyer also raised concerns that no effort has been made thus far to conduct a quantitative study that would gauge the potential effects of CECL. "It is simply reckless for FASB to move forward with the implementation of the CECL standard without adequate information on possible outcomes," he wrote.
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Cannabis-Banking Safe Harbor Bill
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Lawmakers formally introduced community bank supported  legislation that would establish a safe harbor from federal sanctions for financial institutions and ancillary businesses that serve cannabis-related businesses in states where cannabis is legal.
The bipartisan Secure and Fair Enforcement Banking Act would apply solely to states that have legalized cannabis for medical or recreational use. Introduced by Reps. Ed Perlmutter (D-Colo.), Denny Heck (D-Wash.), Warren Davidson (R-Ohio), and Steve Stivers (R-Ohio), the legislation provides that federal banking regulators may not take any prejudicial action in these states against a bank solely because it serves a cannabis-related business.
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2018 Community Bank Survey Results
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Every year, CSBS conducts a nationwide survey of community banks.
The survey represents valuable insight on the current views and concerns of community bankers. In 2018, 521 bankers in 37 states responded.
This year's results are presented in a short video. Click below to
see what we learned.
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Compliance Conference - September 10 & 11
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