Tennessee Bankers

This Week Newsletter

May 23, 2016 - Issue No. 1621

Labor Department Issues Final Overtime Rule, Participate in TBA's Webinar to Learn More

The Department of Labor last Wednesday, May 18, released its final rule doubling the salary level used to determine whether employees are exempt from overtime pay under the Fair Labor Standards Act. Starting on Dec. 1, the new salary level for exemptions will rise from $23,660 to $47,476, or $913 per week.

The final rule sets the salary threshold at the 40th percentile of earnings of full-time salaried workers in the lowest-wage region identified by the U.S. Census Bureau—currently the South. The salary threshold will automatically update every three years, instead of annually as proposed.

Meanwhile, the salary level for highly compensated employees—at which employers may conduct only a minimal duties test for exemption—will rise from $100,000 to $134,000. Up to 10 percent of the standard salary level can come from nondiscretionary bonuses, incentive payments, and commissions, paid at least quarterly. Click here to read more about the final rule.


Complimentary Webinar: The New Fair Labor Standards Act
Overtime Exemption Rules

Presented by Littler Mendelson P.C. in cooperation with TBA, the webinar will be Wednesday, May 25 from 10:00 a.m. to 11:30 a.m. and will cover the new overtime exemption rules. Click here for more details. Contact Debbie Brickles or fill out and return this form by noon on May 24 to register. This program is limited to 100 participants so register today!

Fed Signals Possible June Rate Hike

Fed officials agreed to maintain a 0.25 to 0.5 percent target range for the federal funds rate in April, but signaled a potential rate hike in June, according to minutes from the April 26-27 Federal Open Market Committee meeting. The committee noted slowed growth in economic activity overall, but pointed out job gains and increased household spending as signs that the economy would continue to expand "at a moderate pace."

Committee members said they would continue to monitor incoming economic data, with most members agreeing that a June rate hike would be likely if the data "were consistent with economic growth picking up in the second quarter." All but one committee member voted against an April rate hike. Click here to read the FOMC meeting minutes.

U.S. Supreme Court Affirms 'Injury in Fact' Class Action Standard

In a 6-2 decision, the U.S. Supreme Court last Monday, May 16, affirmed the principle that plaintiffs seeking to bring class actions in federal court must demonstrate concrete and particular "injury in fact" to have standing. The principle is intended to prevent class actions from being brought in response to minor technical violations of law.

In the case of Spokeo v. Robins, the court found that the appellate court had not imposed this requirement adequately on the plaintiff and sent the case back for further proceedings. The case represents a win for banks, which have been subject to "a rash of abusive class actions," ABA and several other trade groups said in a friend-of-the-court brief. Click here to read the opinion. Click here to read the financial trade groups' brief.

Citizens National Bank, Athens, Announces Deal with Simmons First National Bank

In a deal announced May 18, Simmons First National Corp. agreed to acquire all of the outstanding common stock of Athens, Tennessee based Citizens National Bank. The deal is set to close in the fourth quarter and is subject to approval by regulators and Citizens National Bancorp shareholders. Simmons is a $7.5 billion Arkansas based financial holding company conducting financial operations throughout Arkansas, Kansas, Missouri, and Tennessee. This deal comes after Simmons First Chairman and CEO George Makris announced in a late April earnings call the bank's plans to surpass the $10 billion asset-mark in 2017.

Participate in the 2016 TBA Salary and Benefits Survey

Is your bank's compensation still competitive? By filling out the 2016 TBA Salary and Benefits Survey, you'll get the current market information you need to attract, retain, and motivate top banking talent. 

All participating members will receive a free PDF copy of both the Salary and Benefits Survey. In addition, by participating in the survey you will receive 60 percent off the retail price of National or Regional survey reports. 

This survey report will provide salary and bonus benchmarks for 239 positions, as well as information on benefits, incentives, director compensation, and human resource practices. This survey report also will allow you to benchmark your bank's compensation practices against other similar banks.

The survey is in an Excel format and provides instructions on how to access, complete, and submit the survey. For confidentiality purposes, the survey information is sent to Crowe Horwath LLP. 

Click here to participate. The deadline is June 1, 2016. 

IT Auditing for Financial Institutions Rescheduled for September 9

Boards of directors and senior management are responsible for ensuring that the institution's system of internal controls operates effectively. One important element of an effective internal control system is an internal audit function that includes adequate IT coverage. 2016 IT Auditing for Financial Institutions will examine several material areas of an IT audit.

For all who deal with internal control issues, this live, overview program will provide vital internal control information. It covers current issues that not only have an internal impact but also an external influence on the daily operations of the bank. This program has been rescheduled for September 9 at Nashville's TBA Barrett Training Center. Click here to learn more.

Submit Your Bank's Community Involvement, News, and Promotions to TBA

We want to know the latest news about your bank for possible inclusion in The Tennessee Banker magazine. Please submit text and photos to Tyler Nelson about the following items: 

  • Job promotion announcements
  • Bank celebrates milestone or receives an award
  • Opening a new branch
  • Community involvement

Follow TBA on Social Media

Tennessee Bankers Association is on social media. Give us a follow for the latest in all TBA news, events and much more!

TBA On the Road

  • TBA hosts a reception at LSU for the 76 students from Tennessee attending Graduate School of Banking.

See where TBA goes while "on the road" by following

@TNBankers or  #TBAontheroad

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