New overtime rules take effect

Manufacturing News, Source : The Manufacturer US
Published : 20 Sep 2004 15:49

New US Department of Labor regulations regarding eligibility for overtime pay—the first overhaul of the rules in more than 50 years—took effect last month.

New US Department of Labor regulations regarding eligibility for overtime pay—the first overhaul of the rules in more than 50 years—took effect last month.

The new rules redefine the eligibility of many administrative, professional and managerial workers.

According to the US Department of Labor, workers earning less than $23,660 per year—or $455 per week—are guaranteed overtime protection, which it says will strengthen overtime rights for 6.7 million American workers, including 1.3 million low-wage workers who were denied overtime under the old rules. No more than 107,000 workers will lose their overtime eligibility, says the Department.

But some groups believe the changes will do more harm than good. The Economic Policy Institute, a nonprofit think tank, has predicted that some six million workers will lose their eligibility for overtime pay.

Several Democrats, including US Senator Tom Harkin (D-IA), have tried repeatedly to pass legislation rolling back the new regulations. Harkin was narrowly successful recently in attaching a rollback amendment to the Jumpstart Our Business Strength (JOBS) Act, which is currently under consideration in the US House of Representatives.

The presidential campaign of US Senator John Kerry (D-MA) was quick to respond. “If you work hard, then you should be rewarded for that effort,” said US Senator John Edwards (D-NC), the Democratic vice presidential nominee, in a recent radio address. “It is a time-honored tradition. It is what built this country. Why would anyone support this new rule which could mean a pay cut for millions of Americans who have already seen their real wages drop again this year?”

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