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Eliminating The Right To Overtime Pay(Is this for real?)
Economic Policy Institute ^ | June 26, 2003 | by Ross Eisenbrey and Jared Bernstein

Posted on 03/09/2004 5:19:44 PM PST by TheSpottedOwl

Executive summary On March 31, 2003, the Department of Labor (DOL) proposed regulatory changes, which if adopted, could make more than eight million white-collar employees ineligible for overtime pay. Under the current Fair Labor Standards Act (FLSA) regulations adopted in 1938, most workers—an estimated 79% as of 1999—are guaranteed the right to overtime pay, or time and a half, for every hour worked beyond the normal 40-hour workweek. For white-collar workers, three tests determine whether they are exempt, and thus ineligible for overtime pay, or nonexempt, and thereby eligible for overtime pay. The rule changes proposed by the Bush Administration in March 2003 would make drastic changes to these tests, vastly increasing the number of exempt employees and making it likely that millions of them will work longer hours at reduced pay.

Under current law, each of the following three tests must be met to classify an employee as exempt and therefore ineligible for overtime. First, the "salary-level" test stipulates that employees earning less than a certain level each week cannot be exempt. Second, the "salary basis" test states that employees must be paid a set salary—not an hourly wage—in order to be exempt. Finally, the third screening test is the "duties test," which states that a worker cannot be denied overtime pay unless his or her duties are primarily "administrative," "professional," or "executive" in nature.

(Excerpt) Read more at epinet.org ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events; Politics/Elections
KEYWORDS: bravosierra; morebadnews; moveonorg; overtime
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Admin, please fix this if I messed it up :-)

This was posted on another site, that isn't political in most cases. Someone that I have posted Kerry articles to, pointed out this little nugget. Be aware that it is sponsored by the AFL-CIO http://www.saveovertimepay.org/

Has anyone here heard of this? Bush is being blamed for redesignating positions and occupations where a lot of folks are going to be considered overtime exempt, where they weren't in the past.

Anyone have anything to refute this?

1 posted on 03/09/2004 5:19:45 PM PST by TheSpottedOwl
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To: TheSpottedOwl
ineligible for overtime.

This is a lie. In fact, the federal government would stop forcing employers to pay overtime for many workers who can be characterized as managers. As it should.

If an employer wants his workers to work overtime, he can continue to pay time-and-a-half, or whatever amount he wants to offer them.

2 posted on 03/09/2004 5:24:03 PM PST by The Old Hoosier (Right makes might.)
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To: TheSpottedOwl
As a dedicated GWB supporter, I have this to say. ANOTHER URBAN LEGEND. This will law never pass unless the CEO's stop accepting Million Dollar bonuses for our productivity!
3 posted on 03/09/2004 5:29:48 PM PST by rocksblues (Keep em Flying and come home safe!)
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To: rocksblues
Law will. LOL
4 posted on 03/09/2004 5:31:28 PM PST by rocksblues (Keep em Flying and come home safe!)
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To: TheSpottedOwl
1) All of this can be avoided by paying the currently salaried (now non-exempt, but exempted under proposed rules) worker on an hourly basis.

2)Most of the "scare" about LPN's, etc. losing their rights to OT won't matter a wit as these folks are generally paid hourly and under union contract, where time and 1/2 applies as does double-time, holiday time premiums, etc.

3)Unions represent hourly - largely non-exempt - workers, so they are using this as a hammer to beat about the administration. Secretly they are probably licking their chops at the possibility of "organizing" the disgruntled or fearful out of this proposal.

4) Though I may not agree with each one of the proposals, this portion of the FLSA is way overdue for revamp after decades of change in technology, job design, and wages.

5 posted on 03/09/2004 5:37:14 PM PST by anniegetyourgun
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To: TheSpottedOwl
How about the second paragraph of the article itself.

Under current law, each of the following three tests must be met to classify an employee as exempt and therefore ineligible for overtime. First, the "salary-level" test stipulates that employees earning less than a certain level each week cannot be exempt. Second, the "salary basis" test states that employees must be paid a set salary—not an hourly wage—in order to be exempt. Finally, the third screening test is the "duties test," which states that a worker cannot be denied overtime pay unless his or her duties are primarily "administrative," "professional," or "executive" in nature.

Now, I know for a fact that I, for one, fail the first test. My salary is too high. I also fail the second test, in that my salary is a gross number, payable in 24 installments over the year. But the kicker is the third test. I'm not managerial, not a 'professional' as I have no degree, nor am I an executive. I'm the guy who has to drive from my home or office to the jobsite plus work my eight plus hour shift testing equipment and work more than half of the weekends rebuilding equipment in emergencies or its the only time a customer can take his facility off-line, or the transformer can come down, or the long holiday where production has ceased and the power can be shut down. I get all my overtime, double time and triple time at 1/2080th of my salary for every extra hour over forty.

I say enact this law and open up the opportunity for 8 million more working stiffs to make the 'time and a half'.

6 posted on 03/09/2004 5:37:35 PM PST by woofer
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To: TheSpottedOwl
If you are covered by a negotiated union contract this doesn't apply. P.A.C.E. is pushing to organize you techie types to which it would apply, typical commie union misdirection.
7 posted on 03/09/2004 5:39:07 PM PST by Little Bill (I can't take another rat in the White House at my age.)
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To: TheSpottedOwl
If you are covered by a negotiated union contract this doesn't apply. P.A.C.E. is pushing to organize you techie types to which it would apply, typical commie union misdirection.
8 posted on 03/09/2004 5:39:18 PM PST by Little Bill (I can't take another rat in the White House at my age.)
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To: The Old Hoosier
This is a lie. In fact, the federal government would stop forcing employers to pay overtime for many workers who can be characterized as managers. As it should.

If an employer wants his workers to work overtime, he can continue to pay time-and-a-half, or whatever amount he wants to offer them.

It's a lie?

http://www.dol.gov/esa/regs/fedreg/proposed/2003033101.pdf

These are the current federal guidelines. While I believe that we should eliminate federal government from everything except running the federal govt; if this proposed legislation is for real, people are going to get the shaft.

I just want to know if anyone has heard about this proposed legislation, because I haven't seen it posted here.

9 posted on 03/09/2004 5:43:03 PM PST by TheSpottedOwl (Until Kofi Annan rides the Jerusalem RTD....nothing will change.)
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To: rocksblues
This will law never pass unless the CEO's stop accepting Million Dollar bonuses for our productivity!

I was thinking what a boon to WalMart, who already makes their employees clock out then continue working.

10 posted on 03/09/2004 5:49:00 PM PST by TheSpottedOwl (Until Kofi Annan rides the Jerusalem RTD....nothing will change.)
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To: TheSpottedOwl
I was thinking what a boon to WalMart, who already makes their employees clock out then continue working.

Hardly a Walmart policy. And anyone dumb enough to work for free doesn't deserve a paycheck.

11 posted on 03/09/2004 5:54:54 PM PST by stands2reason
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To: TheSpottedOwl
This group was founded by a bunch of leftists. The changes in the overtime laws will shift the exempt classifications from lower income to higher income, which seems right to me. The biggest change will be changing the salary below which a worker MUST be paid overtime. Right now, people making less than $200 a week can be classified "exempt." The new rule will raise that amount to about $550 per week.

People in higher income brackets, over $60k, can be classified as exempt automatically, I think. The big numbers, the 5-7 million numbers being tossed around by this group, are their "estimates," and not to be trusted.
12 posted on 03/09/2004 5:58:56 PM PST by lady lawyer
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To: anniegetyourgun
2)Most of the "scare" about LPN's, etc. losing their rights to OT won't matter a wit as these folks are generally paid hourly and under union contract, where time and 1/2 applies as does double-time, holiday time premiums, etc.

3)Unions represent hourly - largely non-exempt - workers, so they are using this as a hammer to beat about the administration. Secretly they are probably licking their chops at the possibility of "organizing" the disgruntled or fearful out of this proposal.

The problem I have is that many employers are totally unscrupulous. It's fine if you have a salary for a weekly amount, but what happens when your boss lays off other workers and expects you to pick up the slack...at the same weekly pay rate? We are lucky to be employed these days, and they know it. I guess if we don't like it, the job will simply become a job that Americans won't do :-(

Hey I'm not union, but this whole thing scares me.

13 posted on 03/09/2004 6:04:50 PM PST by TheSpottedOwl (Until Kofi Annan rides the Jerusalem RTD....nothing will change.)
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To: anniegetyourgun
Another bonus is job experience will be equivalent to a degree where applicable.
That means some guy who has been working as a tech for 20 years can't be replaced by a 20 year old guy with a degree only because of costs - they will be required to be paid the same. So which employee would you want?
It will help many folks who couldn't/can't go to college, but are intelligent and have a lot to offer an organization.
14 posted on 03/09/2004 6:06:33 PM PST by mabelkitty (A tuning, a Vote in the topic package to the starting US presidency election fight)
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To: TheSpottedOwl
I read about this on FR, last summer. (If that helps.)
15 posted on 03/09/2004 6:07:22 PM PST by Pan_Yans Wife (The soul unfolds itself, like a lotus of countless petals. --- Kahlil Gibran)
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To: Little Bill
always remember more govern. interference with private business= more outsourcing, more jobs going to mahatma and juan.
16 posted on 03/09/2004 6:09:21 PM PST by rodguy911
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To: TheSpottedOwl
What are you afraid of?
Most folks aren't getting the benefits they deserve, and the tax brackets hardly make working overtime even worth it. However, extra vacation, medical deductions, 401K matching, etc. and other benefits are usually out of reach for misclassified individuals so this is cool.
17 posted on 03/09/2004 6:09:28 PM PST by mabelkitty (A tuning, a Vote in the topic package to the starting US presidency election fight)
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To: woofer
I say enact this law and open up the opportunity for 8 million more working stiffs to make the 'time and a half'.

I see what you're saying, however all they have to do is lower that wage level.

18 posted on 03/09/2004 6:11:02 PM PST by TheSpottedOwl (Until Kofi Annan rides the Jerusalem RTD....nothing will change.)
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To: Little Bill
Lol, at the moment I'm kind of unemployed. I was my mom's conservator, and now I'm the executrix. Crummy job. My dad was in the Postal Workers Union, and I was told to never take a union job.
19 posted on 03/09/2004 6:12:46 PM PST by TheSpottedOwl (Until Kofi Annan rides the Jerusalem RTD....nothing will change.)
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To: stands2reason
Hardly a Walmart policy. And anyone dumb enough to work for free doesn't deserve a paycheck.

If you're desperate for a paycheck, you'll do it because you have no choice. I know you didn't mean to be condescending towards people with limited job skills.

20 posted on 03/09/2004 6:16:45 PM PST by TheSpottedOwl (Until Kofi Annan rides the Jerusalem RTD....nothing will change.)
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