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Senate opposes OT-rule changes 05-05-04

   
Posted on Wed, May. 05, 2004

LABOR

Senate opposes OT-rule changes


With a vote to guarantee overtime pay to workers who currently qualify, the Senate bucked the White House and placed itself on the side of organized labor.



Associated Press

In an election-year snub of the Bush administration, the Republican-controlled Senate voted Tuesday to require that new Department of Labor regulations guarantee the right to overtime pay for all workers who currently qualify.

The vote was 52-47, with five Republicans siding with Democrats and organized labor. Labor Secretary Elaine Chao said the action put ''at risk the new, stronger, overtime protections for police, firefighters, blue-collar workers and millions of other Americans guaranteed'' by rules set to take effect in August.

The Senate move took the form of an amendment to corporate-tax legislation that has been stalled for months and has yet to clear the House. Moreover, the administration threatened a year ago to veto legislation that would've halted work on the rules.

The new rules would mark the first overhaul of government OT rules in more than 50 years. Administration officials say they would guarantee OT rights for all white-collar workers making up to $23,660 a year and protect or expand current eligibility for those making up to $100,000 a year.

Chao and other officials also say the rules aim to clarify confusion resulting from changes in the workforce over the years and to eliminate the need for workers and employers to go to court to determine eligibility.

Chao told a House committee recently that such lawsuits were on the rise and that, often, ``workers receive only a few thousand dollars each while the lawyers may walk away with millions.''

The department estimates that only 107,000 workers earning more than $100,000 annually would be adversely affected by the proposed rules. Chao revised the regulations substantially over a draft issued a year ago, in response to complaints by Republican lawmakers fearing that police, firefighters and others could lose overtime eligibility.

But Democrats and organized labor have said that, even with the revisions, millions of workers in dozens of occupations -- from police sergeants to employees in the computer industry -- could wind up losing the right to earn overtime pay.