Washington Department of Labor & Industries Issues Revised Version of Overtime Employment Rules

Under the proposal, salary threshold could increase between 2 and 2.5 times the minimum wage starting in 2020.

Compliance image11/27/18

The Washington State Department of Labor & Industries (L&I) has released its revised version of the overtime employment rules that will impact executive, administrative, and professional (EAP) workers in Washington State. Under the proposal, L&I is considering increasing the salary threshold to between 2 and 2.5 times the minimum wage starting Jan. 1, 2020.

As part of the proposal, L&I is looking for feedback on:

Questions for stakeholders about this section:

  1. Assuming an effective date of Jan. 1, 2020, should the department consider a phased-in implementation of the new threshold for employers based on employer size?

What phase-in schedule should the department propose?

    1. What method would you recommend to define employer size?
    2. When would you recommend the updated threshold take effect for all employer sizes?

During a phase-in period and/or once the rule is fully implemented, should the department consider adopting a higher salary threshold in higher-wage cities, counties, or areas of the state?

    1. What method would you recommend for defining which areas would be subject to a different threshold?
    2. Would you recommend a different phase-in schedule apply to these higher threshold areas? How should the implementation schedule differ?

Other possible changes to the rules include aligning the state and federal job duties tests, which are used to determine if an employee who is salaried is exempt from overtime.

Public input can be provided at a feedback session, online or by email (EAPRules@Lni.wa.gov) through Dec. 14. Feedback from the public will help L&I develop the official draft rules, which will be released when the formal rulemaking process begins in early 2019.

Question of the Week

Q. A member told us that his cashier’s check was stolen and he would like to put a stop payment on it. Can he?

A. No, a credit union cannot put a stop payment on a cashier’s check, but the member may fill out a Declaration of Loss.

A credit union cannot place a stop payment on a cashier’s check it has issued because the Uniform Commercial Code states the issuer of a cashier’s check is obligated to pay such a check (See UCC 3-412).

A credit union may “refuse to pay” its cashier’s check under certain circumstances, such as alteration, forged endorsement, or a claim against the payee or presenter of the check. However, where the credit union wrongfully refuses to pay the cashier’s check, it is liable to any holder in due course on which payment is refused for compensation of expenses, loss of interest, and consequential damages in addition to the amount of the check (See UCC 3-411(b)). A credit union may also properly refuse to pay a cashier’s check when the person who claims the right to receive payment under the check (Claimant), executes and provides to the credit union a “Declaration of Loss” (See UCC 3-312).

A “Declaration of Loss” is a written or electronic statement provided to the credit union and made under penalty of perjury by either the payee or the remitter of the check, that the check has been lost, destroyed, or stolen. On the 90th day following the date of the check, if the check has not been presented, the credit union is obligated to pay the amount of the check to the claimant and it is relieved of its obligation to pay the check if it is presented for payment. The credit union may rightfully refuse to pay the check in this situation or it may pay the check and obtain reimbursement from the claimant. Prior to the 90th day, the credit union may pay the check if it is presented for payment by a person entitled to enforce payment and such payment discharges the credit union of any obligation to pay the claimant based upon the “Declaration of Loss.”

Legal Briefs

Federal Reserve Board (FRB)/Bureau of Consumer Financial Protection (BCFP)

The FRB and BCFP jointly released proposed amendments to Regulation CC. The proposed amendments concern the methodology for calculating the increases in the dollar thresholds within Regulation CC, implement EGRRCPA requirements, and reopen the comments on the 2011 proposed changes to Regulation CC.

Bureau of Consumer Financial Protection (BCFP)

The BCFP released dollar threshold changes for Regulation Z that will apply for determining exempt consumer credit transactions in 2019. In addition, the BCFP released dollar threshold changes for when an appraisal is required for a “Higher-Risk” mortgage loan.

Washington State Labor and Industries (L&I)

The WA L&I has released their revised version of the overtime employment rules that will affect executive, administrative, and professional (EAP) workers in Washington state.

Federal Financial Institutions Examination Council (FFIEC)

The FFIEC will hold a webinar on Dec. 6 to promote awareness and understanding of efforts to develop alternative reference rates to LIBOR.

Office of the Comptroller of the Currency (OCC)

The OCC issued proposed rulemaking to increase the appraisal threshold requirement for residential real estate transactions to $400,000.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of Nov. 20. The last update prior to this was Nov. 13.

Questions? Contact the Compliance Hotline: 1.800.546.4465; compliance@nwcua.org.