Vol. XXXIV, No. 27 Legal Bank Holidays: 2024 ScheduleThis issue serves as a reference to the Holiday Schedule for 2024 listed by legal definition and the dates upon which such holidays will fall. Official holidays for state-chartered banks are governed by state law; Neb.Rev.Stat. § 62-301. If any holiday date falls on Sunday, the following Monday shall be a holiday. If the date designated by the State for the observance of any holiday, except Veterans Day, is different from the date of observance of any such holiday pursuant to a federal holiday schedule, the federal holiday schedule will be observed. A bank may, at its own option, be open or closed on an official holiday provided that reasonable notice is given to the public in accordance with state statute. A holiday observance becomes important in determining liability under the UCC midnight deadline rule and must be considered carefully when planning to close on a Friday or Monday in lieu of a regularly scheduled holiday which might fall on Saturday or Sunda. 12 U.S.C. § 95(b)(1) addresses the applicability of state banking holidays to national banks as follows:
National banks may, in their discretion, either close or remain open on such a state-designated holiday unless the Comptroller of the Currency by written order directs otherwise. (Source: 12 U.S.C. § 7.3000) A more detailed article, sample notice and pertinent statutory provisions may be found in the NBA Compliance Handbook: Volume I: Governance section titled "Bank Holidays." Official Federal Reserve System and State Holidays (2024) (Legal Definition | Date Observed)
*Although an official state holiday, the Federal Reserve Banks are open on Arbor Day and on the day after Thanksgiving. NOTE: The Federal Reserve standard holiday schedule provides that if a holiday falls on a Sunday, the following Monday is observed as a holiday. For holidays falling on a Saturday, the preceding Friday is not observed as a holiday. For future planning, an extended list of bank holiday schedules for 2025-2026 is found below (Holiday - 2025: DATE; 2026: DATE):
The foregoing Compliance Update is for informational purposes only and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Vol. XXXV, No. 26 Special Appraisal Requirements for Higher-Priced Mortgage LoansThe Board of Governors of the Federal Reserve System has announced the annual adjustment of the dollar amount used to determine whether a small loan is exempt from the special appraisal requirements that apply to higher-priced mortgage loans. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 amended the Truth in Lending Act to require creditors to obtain a written appraisal based on a physical visit of the home's interior before making a higher-priced mortgage loan. The rules implementing this requirement contain an exemption for loans of $25,000 or less and also provide that the exemption threshold will be adjusted annually based on the annual percentage change reflected in the Consumer Price Index. The exemption threshold will increase from $31,000 to $32,400, effective January 1, 2024, based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers as of June 1, 2023. Full-Text PDF The foregoing Compliance Update is for informational purposes only and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Vol. XXXV, No. 25 Regulation Z - Consumer Credit Transactions Threshold AmountThe Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau have issued final rules pertaining to the implementation of the Consumer Protection Act (CPA). Effective January 1, 2024, the threshold for exempt consumer credit transactions will increase from $66,400 to $69,500. Full-Text PDF The foregoing Compliance Update is for informational purposes only and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Vol. XXXV, No. 24 DOL FMLA Guidance - Holidays During FMLA LeaveI. Background The Department of Labor (DOL) has issued an Opinion Letter (FMLA 2023-2-A) to clarify how the amount of leave used is calculated when an employee takes Family and Medical Leave Act (FMLA) leave for less than a full week during a week that includes a holiday. The DOL issued the Letter in response to a request for information on whether an employee who takes leave during a holiday week is: (a) using a fraction o the employee's usual work week (i.e., as if the work week did not include a holiday); or (b) using a fraction of the reduced workweek (i.e., the employee's usual work week, less the holiday day). In general, the FMLA entitles eligible employees to up to 12 "work weeks" of leave in an 12-month period: a) for one's own "serious health condition"; b) to care for a seriously ill or injured spouse or dependent; c) for the birth, adoption or placement of a child; or d) to deal with "exigencies" related to their spouse's military deployment. Eligible employees may take intermittent FMLA leave which consists of separate blocks of leave for a single illness or injury. II. Opinion Letter The Opinion Letter explains that, if a holiday falls during the week when an employee takes a full work week of FMLA leave, then a full work week is counted as FMLA leave. Under certain circumstances, an employee may use FMLA leave intermittently or on a reduced leave schedule by reducing the number of hours worked during a day of the week. The Opinion Letter explains that the DOL has taken a consistent position that when an employee is taking less than a full work week of FMLA leave, the holiday is not counted as FMLA leave unless the employee was scheduled to work on the holiday and used FMLA leave for that day. The Opinion Letter notes that "subtracting the holiday from the work week when calculating the amount of FMLA leave used in a partial week of leave would impermissibly reduce the employee's leave entitlement because the employee would have to use a larger amount of FMLA leave than needed." The Opinion Letter concludes "that under the FMLA, the employee's normal work week is the basis of the employee's leave entitlement." If the employee is not scheduled to work on the holiday, the fraction of the work week leave used is the amount of FMLA leave taken (not including the holiday) divided by the total work week (including the holiday). Full-Text PDF The foregoing Compliance Update is for informational purposes only and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Vol. XXXV, No. 23 New Federal Protections for Pregnant and Nursing EmployeesI. Introduction The Pregnant Workers Fairness Act (PWFA) and the Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP) were included in the 2023 Consolidated Appropriations Act and impose new federal requirements on employers with respect to accommodations for pregnancy-and-childbirth-related conditions for nursing mothers. II. Pregnant Workers Fairness Act The Pregnant Workers Fairness Act gives workers with conditions arising from pregnancy or childbirth the right to reasonable accommodations in the workplace. The Act requires an employer to provide reasonable accommodation for a known physical or mental condition related to, affected by, or arising out of pregnancy or childbirth, or related medical conditions, regardless of whether the condition meets the definition of disability under the ADA. The PWFA applies to employers with 15 or more employees and to "qualified employees" meaning an employee or job applicant who can perform the essential functions of the position, with or without reasonable accommodation. However, under the PWFA, an employee is still "qualified" even if she is temporarily unable to perform the essential functions of the job, so long as her temporary inability to perform the job can be reasonably accommodated and the possibility of performing the essential functions "in the near future" exists. The PWFA requires an employee to put the employer on notice of the employee's limitations. The PWFA allows either the employee or the employee's representative to communicate the limitations to the employer. The PWFA also requires employers and employees to engage in the same interactive process as required under the ADA to determine a suitable reasonable accommodation. Additionally, the PWFA provides a good faith defense liability for damages if an employer demonstrates a genuine effort to work with an employee to find a reasonable accommodation that would provide an equally effective opportunity for the employee without causing undue hardship to the employer. III. Providing Urgent Maternal Protections for Most Nursing Mothers Act (PUMP) The PUMP of Nursing Mothers Act expands employers' obligations under the Fair Labor Standards Act (FLSA). With the passage of the PUMP Act, an employer must, in addition to existing requirements to provide a private location for nursing employees to express breast milk, allow the employee a reasonable break for the expression of breast milk for one year following the birth of an employee's nursing child. The new act requires all employees to be paid for time spent expressing breast milk if expressing breast milk over an otherwise paid break or if not relieved from duty completely. However, exempt employees must be paid their salary regardless of whether they use a break period to express breast milk. An employer is not obligated to pay non-exempt employees over an otherwise unpaid break period, unless it is required under some other municipal ordinance or state or federal law. Employers with less than 50 employees may be eligible for an exemption if the employer can demonstrate that compliance with the law would inflict an undue hardship on the employer's business operations due to the expense and difficulty in relation to the resources or nature of the business. Prior to filing a suit for a violation of the PUMP Act, an employee must bring the alleged violation to the employer's attention and allow the employer a 10-day grace period to cure the alleged violation. However, this requirement does not apply to retaliation claims or claims alleging an employer expressed an intent to not comply with the law. The Wage and Hour Division of the United States Department of Labor has issued a bulletin (Field Assistance Bulletin No. 2023-02) relating to the enforcement of protections for employers to pump breast milk at work, which may be found at: https://www.dol.gov/sites/dolgov/files/WHD/fab/2023-2.pdf. Full-Text PDF The foregoing Compliance Update is for informational purposes only and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Vol. XXXV, No. 22 Truth in Lending Act |
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