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Senate passes amendment blocking overtime pay change

Six Republican senators today joined Democrats in passing an amendment to block controversial Bush administration rules that critics said would cause millions of workers to lose the right to overtime pay.

The amendment, sponsored by Sen. Tom Harkin, D-Iowa, would effectively prevent the Labor Department from issuing a proposed regulation that would make it easier for employers to classify workers as exempt from overtime eligibility. Harkin said he "saw a lot of arm-twisting" among Republicans during the vote, but praised the six Republicans for having "stepped up" despite the pressure.

GOP Sens. Ben Nighthorse Campbell of Colorado, Lincoln Chafee of Rhode Island, Lisa Murkowski of Alaska, Olympia Snowe of Maine, Arlen Specter of Pennsylvania and Ted Stevens of Alaska voted with Democrats to block the rule, while Democratic Sen. Zell Miller of Georgia voted with Republicans to support it.


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Despite a threat by President Bush to veto the massive Labor-HHS spending bill if it includes the provision blocking the overtime rules, Democrats said they hope to preserve it in conference.

Senate Minority Leader Tom Daschle, D-S.D., said Democrats have a "good shot" at winning a motion to instruct House conferees to adopt the Senate's stance on the overtime rule. House staffers, however, said the timing for a motion to instruct is unclear.

Sen. Edward Kennedy, D-Mass., said if the measure is not included in the final conference report, critics of the Labor Department rules could pass a resolution of disapproval once the department issues them.

The Labor Department's proposed rules could have an impact on overtime pay for federal employees. The Office of Personnel Management is in charge of overseeing overtime rules in the federal sector. OPM's current criteria for deciding if an employee is exempt or nonexempt are based on the Labor Department's criteria.

OPM was not involved in the Labor Department's revision efforts, but because its rules are so similar to Labor's, it's possible that OPM will follow Labor's suit. OPM would have to propose its own regulatory changes for federal agencies to be affected.

Business groups, which overwhelmingly support the proposed Labor Department rules, blasted the Senate vote, saying that Democratic estimates about the number of workers who would lose overtime are inflated.

The Labor Department said the rule change will cause 644,000 workers to lose overtime pay, but the Economic Policy Institute estimates that 8 million will lose eligibility for overtime.

In a statement, the National Retail Federation said the Senate "squandered" the chance to modernize the overtime rules. The National Federation of Independent Business said it would include the vote in a scorecard sent to members.

"Updating overtime regulations is essential to our members because it will clarify which workers are eligible for overtime and which are not," said NFIB Senior Vice President Dan Danner. "Making this determination easier for small business owners will cut down on the number of costly litigation between employers and employees."

COMMENTS

  • Okay, now let's look at reversing some of the exemptions in place now. The Fair Labor Standards Act should hold without exemption. The fact that a person would be expected to work overtime at less than their normal hourly rate is confusing, and I'm not sure how that's consider "fair." We're not salaried employees; we work at an hourly rate so we should get compensated at time and half when we go over our 40 hours per week, period.
  • Great job, Senate! I was beginning to think all common sense had left this country. The only ones that could possibly benefit from this action would be "BIG BUSINESS" and the people that give big campaign contributions. The poor person that works for a living (and wants a family/home life) would have the screws put to them, we will pay you the same salary, but you have to work more hours. Leave things as they are, the American family already suffers from a lack of cohesivness because of the number of hours that are required to work (more then any other civilized country) just to survive. We do not need more time at work heaped upon us so the "company" can make a profit. If we still had real jobs in this country, and not just service jobs, we would not have these type problems. Thanks to the Senators with enough backbone to stand up against the "party line" and big business.