Credit: wftv.com (ABC Orlando)

 

 

Millions May Lose Overtime Pay With New Bush Bill

 

POSTED: 6:57 a.m. EDT July 11, 2003

UPDATED: 11:48 a.m. EDT July 11, 2003

 

 

A "victory for workers and employers alike"? Or "callous disregard for millions of workers"?

 

It depends who you ask. The first comment comes from Labor Secretary Elaine Chao, the second from AFL-CIO President John Sweeney. They're talking about the Bush administration's revised rules on overtime, which House lawmakers have voted to back.

 

The new rules would require overtime for people earning up to about $22,000 a year, up from about $8,000 now.

 

But the rules also take overtime away from at least 644,000 white-collar workers and possibly as many as 8 million.

 

Businesses complain about paying overtime to well-paid workers.

 

Unions say the new rules would let employers stop paying overtime to people such as licensed practical nurses, paralegals and dental hygienists -- though the rules would not affect those covered by union contracts.

 

Democrats and union leaders are blasting President George W. Bush for a proposal they say will cost at least 8 million workers their overtime pay.

 

The House Thursday voted 213-210 to uphold the administration's plan to update the rules that determine who qualifies for overtime.

 

Chao hails the vote, saying the overhaul will protect millions of low-wage workers.

 

Democrats acknowledge that some low-income workers will benefit. But they say millions of other workers will no longer qualify for overtime under the new rules, including tens of thousands of first responders.

 

Sweeney says the vote is "an assault on working families."

 

Further attempts by Senate Democrats to block the rules are possible, but the new regulations could take effect as early as the end of the year unless a law is enacted preventing it.

 

 

Overtime Battle One Of Definitions

 

Washington's battle over overtime pits big business against workers, and it rests on definitions.

 

The Bush administration wants to change the rules governing who gets overtime, including which administrative, professional and executive jobs qualify.

 

The administration says the regulations are outdated. Opponents say the administration wants to help companies that don't want to pay time-and-a-half.

 

The changes mean at least 644,000 white-collar workers now eligible for overtime would lose it. Democrats and unions say the figure is really at least 8 million.

 

The new rules would also make as many as 1.3 million low-income workers eligible for overtime.

 

The new rules could go into effect as soon as the end of the year. The changes won't affect people working under a union contract.

 

 

Copyright 2003 by The Associated Press.

DT, you have to see both sides of the story. Here is an objective article from the South Florida Business Journal.

 

EXCLUSIVE REPORTS

South Florida braces for new overtime law

John T. Fakler

They say bad things come in threes.

 

As if the economy and new smoking ban weren't enough for area restaurants and bars to handle, a new wage and overtime law is slated to begin July 1.

 

More than 1.3 million Americans will become eligible for overtime pay under new U.S. Labor Department rules on what types of jobs are eligible for overtime - the first major revision since 1975. The proposed changes would affect 6.5 million businesses and cost up to $1.57 billion nationally.

 

In South Florida, the most prominent changes will be at service-based businesses that pay "manager"-level workers less than the new $22,100 annual base salary for professionals. An employee paid less than that is likely eligible for overtime.

 

Pay boosts are in the offing, and may be unavoidable in the face of mounting class action legislation, legal sources say.

 

"It's going to have a huge impact on the service industry," said Joe Santoro, an employment attorney with Gunster Yoakley & Stewart in West Palm Beach.

 

So long, $13,000 manager

"Raising salaries from $13,000 a year to $22,000 will affect many employers in South Florida because they employ many lower level managers at considerably less than the minimum," Santoro said.

 

Many middle and low management positions pay far below the $22,100 standard, especially in the hospitality and tourism sectors, he said. Employers must increase salaries to meet that minimum or pay them overtime.

 

"It will create a class no longer eligible for overtime," he said. "You see these positions in the hospitality industry the most, with lower level managers paid $18,000 a year working 60 hours a week. If you have 20 or 30 workers, that's a big hit."

 

April Boyer, an employment attorney with Kirkpatrick & Lockhart in Miami, sees a significant impact on the service and hospitality industry because the salary cap is being increased. That may make low-paid employees that currently are exempt not entitled to overtime, "resulting in increased costs for employers."

 

Many area business owners are unaware of how the guidelines will impact them - whether negatively, or positively in some cases, legal sources say.

 

One positive for owners is that the new law also expands the number of positions that can be considered exempt from overtime pay. The exemption expansion was designed by the Labor Department as a relief of sorts.

 

"What they are trying to do is a trade-off, by simplifying the duties test to apply to a broader base of employee, making it easier to apply the exemption," Santoro said.

 

"These are some significant changes," Santoro said.

 

A comments period held by the Labor Department ends June 30. While the law could take effect as early as July 1, he expects tweaking to the exemption language will likely delay enactment until the end of the year.

 

"No one knows how this will play out," he said.

 

Class-action suits

The resulting ambiguity over which employees are exempt from overtime requirements and which are not has led to a pile of class-action lawsuits, Santoro said.

 

South Florida leads the nation in wage and hour suits, he said, because of the high number of service jobs in the region. He put the number of cases generated in the region at a staggering 25 percent of all cases nationwide.

 

"These law suits are not over a lot of money, sometimes nominal amounts, and recover attorney fees if successful," Santoro said "You may wind up in litigation over a few thousand [dollars]worth of overtime. That's scary [for businesses]."

 

The litigation costs far exceed the monetary claim in an overtime suit, except in a class action, Boyer said.

 

"There is significant time and resources to defending the litigation as opposed to operating a business," she said. "I advise my mid-sized clients without in-house lawyers to consider an overtime audit so that employees are properly classified."

 

Santoro said the new rules apply to every business regardless of size, as long as they "have an impact in interstate commerce."

 

That is virtually all businesses, including mom-and-pops that might face a federal lawsuit, Santoro said.

 

Still, he doesn't expect early compliance. "Employers will just wait and see," he said.

 

Santoro expects the reaction will run the gamut - from the creation of new positions to a shifting of job responsibilities.

 

"There are a lot of ways companies can react," he said. "If you can't afford to pay an assistant manager, you may decide you can do without an assistant manager. More likely we'll see some shifting."

 

Mid-level employees may also become expendable, he added, though widespread job cuts are unlikely.

 

Labor and employment lawyer Joe Z. Fleming of Greenberg Traurig in Miami said the new rule will be positive for employers "because it's a great deal of certainty."

 

But, "if you make a mistake, you are in a lot of trouble," he said.

 

While higher salaries will affect employers' bottom lines in a negative way, the rule doesn't increase the minimum wage, so it's not necessarily inflationary, he said. "You can bring in another shift, or part-timers."

 

What makes the overtime rule tricky for employers, "is they don't understand the laws, they think they are exempt and they wind up in court."

 

To avoid court, Fleming suggested companies audit themselves and educate themselves about changes in the law through Web sites such as the Labor Department's.

 

Under the current rules, someone who earns as little as $155 a week can be classified as white collar and be exempt from overtime. The Labor Department would raise that minimum to $425 a week. That is the largest increase in the minimum since the law was signed in 1934.

 

The proposal would further define executive, administrative and professional duties, and would eliminate a rule that restricted exempt employees from devoting more than 20 percent of their time each week performing non-exempt duties.

 

Instead, the rules would rely on the employee's primary duties.

 

One economic analysis by the Labor Department in March found that the proposed changes would increase direct payroll costs $334 million to $895 million nationwide. Another department model puts the change in cost from $870 million to more than $1.57 billion in additional compensation. Implementation costs alone are estimated at $680 million, the agency said.

 

The rules are supposed to provide clarity and reduce overtime pay litigation. But, ironically, defense attorney Santoro said it would likely spark legal battles.

 

Court opinions have generally favored workers, he said. "Courts look to make sure that employees get paid by whatever mechanisms are there."

 

E-mail Senior Writer John T. Fakler at jfakler@bizjournals.com.

 

 

 

? 2003 American City Business Journals Inc.

DT, you have to see both sides of the story. Here is an objective article from the South Florida Business Journal.

 

EXCLUSIVE REPORTS

South Florida braces for new overtime law

John T. Fakler

They say bad things come in threes.

 

As if the economy and new smoking ban weren't enough for area restaurants and bars to handle, a new wage and overtime law is slated to begin July 1.

 

More than 1.3 million Americans will become eligible for overtime pay under new U.S. Labor Department rules on what types of jobs are eligible for overtime - the first major revision since 1975. The proposed changes would affect 6.5 million businesses and cost up to $1.57 billion nationally.

 

In South Florida, the most prominent changes will be at service-based businesses that pay "manager"-level workers less than the new $22,100 annual base salary for professionals. An employee paid less than that is likely eligible for overtime.

 

Pay boosts are in the offing, and may be unavoidable in the face of mounting class action legislation, legal sources say.

 

"It's going to have a huge impact on the service industry," said Joe Santoro, an employment attorney with Gunster Yoakley & Stewart in West Palm Beach.

 

So long, $13,000 manager

"Raising salaries from $13,000 a year to $22,000 will affect many employers in South Florida because they employ many lower level managers at considerably less than the minimum," Santoro said.

 

Many middle and low management positions pay far below the $22,100 standard, especially in the hospitality and tourism sectors, he said. Employers must increase salaries to meet that minimum or pay them overtime.

 

"It will create a class no longer eligible for overtime," he said. "You see these positions in the hospitality industry the most, with lower level managers paid $18,000 a year working 60 hours a week. If you have 20 or 30 workers, that's a big hit."

 

April Boyer, an employment attorney with Kirkpatrick & Lockhart in Miami, sees a significant impact on the service and hospitality industry because the salary cap is being increased. That may make low-paid employees that currently are exempt not entitled to overtime, "resulting in increased costs for employers."

 

Many area business owners are unaware of how the guidelines will impact them - whether negatively, or positively in some cases, legal sources say.

 

One positive for owners is that the new law also expands the number of positions that can be considered exempt from overtime pay. The exemption expansion was designed by the Labor Department as a relief of sorts.

 

"What they are trying to do is a trade-off, by simplifying the duties test to apply to a broader base of employee, making it easier to apply the exemption," Santoro said.

 

"These are some significant changes," Santoro said.

 

A comments period held by the Labor Department ends June 30. While the law could take effect as early as July 1, he expects tweaking to the exemption language will likely delay enactment until the end of the year.

 

"No one knows how this will play out," he said.

 

Class-action suits

The resulting ambiguity over which employees are exempt from overtime requirements and which are not has led to a pile of class-action lawsuits, Santoro said.

 

South Florida leads the nation in wage and hour suits, he said, because of the high number of service jobs in the region. He put the number of cases generated in the region at a staggering 25 percent of all cases nationwide.

 

"These law suits are not over a lot of money, sometimes nominal amounts, and recover attorney fees if successful," Santoro said "You may wind up in litigation over a few thousand [dollars] worth of overtime. That's scary [for businesses]."

 

The litigation costs far exceed the monetary claim in an overtime suit, except in a class action, Boyer said.

 

"There is significant time and resources to defending the litigation as opposed to operating a business," she said. "I advise my mid-sized clients without in-house lawyers to consider an overtime audit so that employees are properly classified."

 

Santoro said the new rules apply to every business regardless of size, as long as they "have an impact in interstate commerce."

 

That is virtually all businesses, including mom-and-pops that might face a federal lawsuit, Santoro said.

 

Still, he doesn't expect early compliance. "Employers will just wait and see," he said.

 

Santoro expects the reaction will run the gamut - from the creation of new positions to a shifting of job responsibilities.

 

"There are a lot of ways companies can react," he said. "If you can't afford to pay an assistant manager, you may decide you can do without an assistant manager. More likely we'll see some shifting."

 

Mid-level employees may also become expendable, he added, though widespread job cuts are unlikely.

 

Labor and employment lawyer Joe Z. Fleming of Greenberg Traurig in Miami said the new rule will be positive for employers "because it's a great deal of certainty."

 

But, "if you make a mistake, you are in a lot of trouble," he said.

 

While higher salaries will affect employers' bottom lines in a negative way, the rule doesn't increase the minimum wage, so it's not necessarily inflationary, he said. "You can bring in another shift, or part-timers."

 

What makes the overtime rule tricky for employers, "is they don't understand the laws, they think they are exempt and they wind up in court."

 

To avoid court, Fleming suggested companies audit themselves and educate themselves about changes in the law through Web sites such as the Labor Department's.

 

Under the current rules, someone who earns as little as $155 a week can be classified as white collar and be exempt from overtime. The Labor Department would raise that minimum to $425 a week. That is the largest increase in the minimum since the law was signed in 1934.

 

The proposal would further define executive, administrative and professional duties, and would eliminate a rule that restricted exempt employees from devoting more than 20 percent of their time each week performing non-exempt duties.

 

Instead, the rules would rely on the employee's primary duties.

 

One economic analysis by the Labor Department in March found that the proposed changes would increase direct payroll costs $334 million to $895 million nationwide. Another department model puts the change in cost from $870 million to more than $1.57 billion in additional compensation. Implementation costs alone are estimated at $680 million, the agency said.

 

The rules are supposed to provide clarity and reduce overtime pay litigation. But, ironically, defense attorney Santoro said it would likely spark legal battles.

 

Court opinions have generally favored workers, he said. "Courts look to make sure that employees get paid by whatever mechanisms are there."

 

E-mail Senior Writer John T. Fakler at jfakler@bizjournals.com.

 

 

 

? 2003 American City Business Journals Inc.

I see both sides Cape.

 

Problem is this law means... lots of low-income workers (5.15, 6, 7, 8 dollars an hour) who depend on overtime for an extra amount of income is being taken away from them.

 

Businesses are using this as another excuse to screw the mid/poor class for more profits.

DT, this law is more for the White collar workers who do alot in management positions but get paid minimum, not the blue collar workers you speak of. Reread the articles, I know about this.

DT, this law is more for the White collar workers who do alot in management positions but get paid minimum, not the blue collar workers you speak of. Reread the articles, I know about this.

ok, tell me the benefits of this new law and how it'll help low income workers.

Yu guyes dont like mi bill?

 

Everybodi else liked mi bill.

Doesn't affect many low income workers. It only affects those lower income workers who are managers in the workplace and make less than $22,000. They will trade in the overtime for the extra salary money. They can't earn $22,000 even if they did the overtime.

 

So a Barber Shop/Salon manager that makes $11,000 a year with the ability to make $4,000 more with over time ($15,000 total possible) will mkae $22,000 a year automatically, but cannot do over time.

Doesn't affect many low income workers. It only affects those lower income workers who are managers in the workplace and make less than $22,000. They will trade in the overtime for the extra salary money. They can't earn $22,000 even if they did the overtime.

 

So a Barber Shop/Salon manager that makes $11,000 a year with the ability to make $4,000 more with over time ($15,000 total possible) will mkae $22,000 a year automatically, but cannot do over time.

Ok, but does this law take overtime away from blue collar workers?

Doesn't affect many low income workers. It only affects those lower income workers who are managers in the workplace and make less than $22,000. They will trade in the overtime for the extra salary money. They can't earn $22,000 even if they did the overtime.

 

So a Barber Shop/Salon manager that makes $11,000 a year with the ability to make $4,000 more with over time ($15,000 total possible) will mkae $22,000 a year automatically, but cannot do over time.

Ok, but does this law take overtime away from blue collar workers? Nope, it only effects white collar, underpaid managers.

I have lost alot of respect for WFTV for using AP stories. This article continues that trend. Very sad. A good news source is the Business Journals, NBC (WTVJ, WBBH, WESH, WFLA), Tampa Tribune, and the Rush Limbaugh Radio Program (He will out anything wrong by democrats and Republicans, just ask John McCain :lol Man he got beat by Rush.)

Doesn't affect many low income workers. It only affects those lower income workers who are managers in the workplace and make less than $22,000. They will trade in the overtime for the extra salary money. They can't earn $22,000 even if they did the overtime.

 

So a Barber Shop/Salon manager that makes $11,000 a year with the ability to make $4,000 more with over time ($15,000 total possible) will mkae $22,000 a year automatically, but cannot do over time.

Ok, but does this law take overtime away from blue collar workers? Nope, it only effects white collar, underpaid managers. :confused

I have lost alot of respect for WFTV for using AP stories. This article continues that trend. Very sad. A good news source is the Business Journals, NBC (WTVJ, WBBH, WESH, WFLA), Tampa Tribune, and the Rush Limbaugh Radio Program (He will out anything wrong by democrats and Republicans, just ask John McCain :lol Man he got beat by Rush.)

Next time I'll read the story from WESH.com :plain

Next time I'll read the story from WESH.com :plain

WTVJ.com, WESH.com and WFTV.com are run by IBS which has a deal with the AP. I suggest WFLA.com and it's sister Tampa Tribune TBO.com They are very good usually.

FROM WESH.com

 

Millions May Lose Overtime Pay With New Bush Bill

 

POSTED: 6:57 a.m. EDT July 11, 2003

UPDATED: 11:48 a.m. EDT July 11, 2003

 

A "victory for workers and employers alike"? Or "callous disregard for millions of workers"?

 

It depends who you ask. The first comment comes from Labor Secretary Elaine Chao, the second from AFL-CIO President John Sweeney. They're talking about the Bush administration's revised rules on overtime, which House lawmakers have voted to back.

 

Discussion

 

 

OVERTIME BILL

Discuss This Bill

For Or Against Overtime Bill? Proposed Overtime Regulations

How Did Your Rep Vote?

 

 

The new rules would require overtime for people earning up to about $22,000 a year, up from about $8,000 now.

 

 

But the rules also take overtime away from at least 644,000 white-collar workers and possibly as many as 8 million.

 

Businesses complain about paying overtime to well-paid workers.

 

Unions say the new rules would let employers stop paying overtime to people such as licensed practical nurses, paralegals and dental hygienists -- though the rules would not affect those covered by union contracts.

 

SURVEY

The House defeats a Democratic effort to derail the proposed Labor Department changes. Democrats say the proposal would cost millions of workers their overtime pay. What do you think of the bill?

I am against it. Millions of white-collar workers will lose overtime pay.

I am for it. It will help many low-income workers.

 

 

 

Results | Disclaimer

 

Democrats and union leaders are blasting President George W. Bush for a proposal they say will cost at least 8 million workers their overtime pay.

 

The House Thursday voted 213-210 to uphold the administration's plan to update the rules that determine who qualifies for overtime.

 

Chao hails the vote, saying the overhaul will protect millions of low-wage workers.

 

Democrats acknowledge that some low-income workers will benefit. But they say millions of other workers will no longer qualify for overtime under the new rules, including tens of thousands of first responders.

 

 

Sweeney says the vote is "an assault on working families."

 

Further attempts by Senate Democrats to block the rules are possible, but the new regulations could take effect as early as the end of the year unless a law is enacted preventing it.

Overtime Battle One Of Definitions

 

Washington's battle over overtime pits big business against workers, and it rests on definitions.

 

The Bush administration wants to change the rules governing who gets overtime, including which administrative, professional and executive jobs qualify.

 

The administration says the regulations are outdated. Opponents say the administration wants to help companies that don't want to pay time-and-a-half.

 

The changes mean at least 644,000 white-collar workers now eligible for overtime would lose it. Democrats and unions say the figure is really at least 8 million.

 

The new rules would also make as many as 1.3 million low-income workers eligible for overtime.

 

The new rules could go into effect as soon as the end of the year. The changes won't affect people working under a union contract.

 

 

 

Previous Stories:

July 10, 2003: House Gives Nod To Changes In Overtime

July 1, 2003: Labor, Business Groups Split On New Overtime Rules

Copyright 2003 by The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

See, WESH.com is run by the same IBS company and uses AP stories. WESH-TV is usually fine, but for website the Business Journals are good because they cover from the businesses and employees perspectives.

Yea, TBO looks better...

Business Journals are good for everything from Devil Rays deal with PAX to this new law.

 

For local stories the local NBC affiliates are good.

 

Tampa Trib is the best newspaper in the state and WFLA-TV is the best TV News in the state.

 

For best political analysis and Q&A session, tune into Rush Limbaugh (assorted stations) whether your Republican, democrat, or neither. you can call him and talk to him, argue with him, etc. Very nice guy and doesn't bad mouth people, just uses the facts. Give him facts with sources and he will be willing to listen with open ears. He likes partisanship as long as you are not blinded by it.