Articles

Overtime Pay Revisions Benefit More Workers

Opinion
Atlanta Journal-Constitution
April 27, 2004

A year ago, a Bush administration proposal to revamp overtime rules set off alarms and concerned voices, with none louder than unions. Some labor leaders said the move smacked of an attempt to set back the clock to the early 20th century -- the bleak days before overtime.

It did not help that big business, not wage earners, led the campaign for reform, seemingly a sure sign the deal was about shortchanging employees.

But the clamor and outcry forced the administration to write its reform proposals more clearly. The result of the political agitation has been a rewrite of the rules that says that if you earn between $23,660 and $100,000, you still have a chance at overtime pay -- providing you are not an executive or administrative employee, a creative professional or in an academic position.

Importantly, the changes raise the number of wage earners who keep the right to overtime pay.

The final Labor Department rules, which go into effect in 120 days, also clearly support the right for overtime pay among "first responders" such as police officers, firefighters and emergency medical technicians.

The most ardent proponents of updating the overtime rules were businesses, such as retailers, restaurateurs and small-business owners, who were beset by disputes and even lawsuits over claims for overtime. Many of these areas of employment have grown and gained importance since the overtime rules were last visited more than 50 years ago.

In some 500 pages of new rules the labor department tries to say more clearly who wins and who loses in these running disputes. That certainly is a legitimate goal for regulation, though some pessimists say the new rules may set off new areas of dispute that may wind up in the courts.

This much is clear: The overtime flap probably isn't over. Some Democrats say they may introduce legislation to protect constituents who still may lose overtime rights. And U.S. Sen. John Kerry, who is expected to challenge President Bush in the fall, says the changes "strike a severe blow to what little economic security working families have left as a result of Bush's failed policies." Still, Labor Secretary Elaine Chao appears to have reduced the chances that the overhaul will turn into a significant campaign issue.

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