After further review, it appears that the Bush plan
will produce a net increase of 660,000 workers covered
under overtime laws.   Moreover, the excluded workers
will come primarily from such highly-paid,
upper-middle-class to rich-class professions as
engineers and pharmacists.   Perhaps most importantly,
it significantly simplifies the regulations which will
make application *and* _enforcement_ much easier in
the future.  

In other words, this action by Bush is pro-worker,
pro-Union, and pro-40 hour work week, and the
hysterical opposition of the AFL-CIO to this is
positively shameful.

JDG




BUREAU OF LABOR STATISTICS, DAILY REPORT, FRIDAY,
MARCH 28, 2003

For the first time in half a century, federal
regulations proposed Thursday by the Labor Department
could drastically change which workers qualify for
overtime wages.  Nearly 22 million Americans could be
affected by new definitions of white and blue collar
workers.  The changes could cost businesses $870
million to $1.57 billion.  The largest impact would be
felt by lower-income workers and highly compensated,
professional employees.  For the first time, employers
would be required to pay overtime to as many as 1.3
million lower-income workers who put in more than 40
hours a week.  But 640,000 white-collar professionals
who now are required to get overtime, such as some
engineers and pharmacists, would lose it.  (USA TODAY,
page B1) .




Posted 3/26/2003 9:17 PM  
 
http://www.usatoday.com/news/washington/2003-03-26-overtime-pay_x.htm
 
Plan would extend low-income overtime pay
WASHINGTON (AP) � As many as 1.3 million low-income
workers would be eligible for overtime pay for the
first time in a proposed overhaul of decades-old labor
regulations being released Thursday by the Bush
administration. 

But in a trade-off, about 640,000 white-collar workers
such as engineers, insurance claims adjusters and
pharmacists who now receive overtime pay could lose
it, The Associated Press has learned. 

The changes being proposed by the Labor Department are
confined to a section of the 1938 Fair Labor Standards
Act that defines blue-collar and white-collar workers,
and determines who must be paid an hourly rate of
time-and-a-half for working beyond 40 hours a week.
About 110 million workers are covered by the
regulations, which have not been updated in 28 years. 

It is just one of several changes the administration
is pursuing to workplace regulations and programs,
including the Family Medical Leave Act, job training
programs and unemployment insurance. The overtime
proposal is subject to a 90-day public comment period.
Final regulations probably will not take effect until
late this year or early in 2004. 

Business groups long have complained that the complex
rules, which contain outdated job descriptions and
salary levels, require overtime pay for already
well-compensated and highly skilled professionals. A
surge in overtime pay lawsuits aimed at employers also
is a concern. 

But employers could face $334 million to $895 million
in direct payroll costs for the 1.3 million low-wage
workers estimated to become eligible for overtime pay
in the proposal. Overall, businesses could face costs
of $870 million to $1.57 billion to put the changes in
place. 

The benefits of increased productivity and fewer
lawsuits could amount to savings of $1.1 billion to
$1.9 billion, said Tammy McCutchen, administrator of
the Labor Department's wage and hour division. 

"Our proposal has attempted to simplify and update, to
make those rules easier to apply and easier to
enforce," McCutchen said. 

The current regulations are 31,000 words. The proposed
replacement is 13,000 words, she said. 

"Easy, clear rules mean employees will understand when
they're entitled to overtime, employers will know what
their obligations are and the Department of Labor will
be able to more vigorously enforce the law." 

Union officials have said they would oppose any
changes that would cause longer work weeks, because
required overtime pay is the only brake stopping many
employers from demanding excessive work hours. 

"We're concerned that these rules could weaken the
tradition of the 40-hour work week," said Kathy
Roeder, spokeswoman for the AFL-CIO, which hadn't seen
the proposal Wednesday night. 

Workers now are exempt from overtime pay if they earn
more than $155 a week, or $8,060 a year, and meet
other convoluted, confusing job criteria, such as
devoting at least 80% of their time to "exercising
discretion" and other "intellectual" tasks that cannot
be "standardized in ... a given period of time." 

Employees who work under collective bargaining
agreements negotiated by unions will not be affected
by any changes. Also, companies still can choose to
pay overtime to exempt workers. 

The proposal would raise the salary cap to $425 a
week, or $22,100 a year, and any worker earning less
automatically would be required to receive overtime
pay. 

Jobs most affected by the changes likely would be
assistant managers of stores, restaurants and bars,
McCutchen said. They would get overtime pay despite
their management status as long as they earn less than
$22,100 a year. 

The proposal also clarifies and simplifies definitions
of administrative, executive and professional
employees that should be exempt from overtime pay.
Generally, workers would be exempt under the proposal
if they manage more than two employees and have the
authority to hire and fire, or they have an advanced
degree and work in a specialized field, or they work
in the operations, finance and auditing areas of a
company. 


--------------------------------------------------------------------------------

Copyright 2003 The Associated Press. All rights
reserved. 


=====
-----------------------------------------------------------------------
John D. Giorgis               -                  [EMAIL PROTECTED]
  Tonight I have a message for the brave and oppressed people of Iraq:
 Your enemy is not surrounding your country � your enemy is ruling your  
 country. And the day he and his regime are removed from power will be    
           the day of your liberation."  -George W. Bush 1/29/03

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