8/23/2004

President Bush's new, watered-down overtime system takes effect today: Urging President Bush to scrap the rules, the Kerry campaign and organized labor say the regulations will exempt up to six million additional workers from receiving overtime pay by redefining which workers qualify for time-and-a-half pay when they work more than 40 hours. But the administration asserts that no more than 107,000 workers will lose their eligibility, while 1.3 million workers will gain the right to overtime. In essence, the hundreds of pages of new rules redefine the criteria for which administrative, professional and managerial workers qualify for overtime, among them nurses, chefs, pharmacists, funeral directors, claims adjusters and restaurant managers. Senator John Edwards, the Democratic vice-presidential candidate, devoted his political party's weekly radio address on Saturday to assailing the new rules, making clear that the Democrats view them as an issue to exploit when many Americans are worried about the economy and stagnating wages. "Why would anyone want to take overtime pay away from as many as six million Americans at a time when they need that money the most?" Mr. Edwards said. "And 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?" That follows attacks by Senator John Kerry, the Democratic presidential nominee, who said last month, "The new overtime regulations represent a shameful assault on the paychecks of hard-working Americans at a time when they are already putting in more hours, paying more for everyday costs and saving less than ever before." To turn up the volume on the issue, the A.F.L.-C.I.O. says it will hold a news conference today and will distribute several million fliers saying Mr. Bush has given its corporate friends a gift that will cut the paychecks of millions of Americans. The administration asserts that the new regulations are needed to replace vague, outmoded rules that have spurred many lawsuits as employers and employees tussle over which workers are exempt and which are not. The administration argues that the overtime rules are clearer, will be easier to enforce and will reduce expensive litigation that hurts business and the economy. "We view this as a step in the right direction for bringing clarity and certainty to this area of the law so there can be greater compliance," said Alfred Robinson, director of the Labor Department's wage and hour division. "And that's good for employers and employees. I'd rather focus on that than the spin and the politics." Critics of the new rules say they are another example of the Bush administration's taking regulatory steps that please businesses, which have lobbied for years to revamp the overtime regulations. The Economic Policy Institute, a liberal research group, has issued a report, which many Democrats have relied on, concluding that the rules will exempt about six million workers from overtime coverage. Among those, the institute said, are 1.4 million low-level salaried supervisors, 130,000 chefs and sous-chefs and 900,000 workers with graduate or college degrees who will now be considered professional employees. The administration has accused the institute and the A.F.L.-C.I.O. of engaging in a partisan campaign of misinformation on the issue. Senator Tom Harkin, an Iowa Democrat who has failed in repeated attempts to win passage of a bill to roll back the rules, said he would introduce new legislation to try again. Read the AFL-CIO's factsheet here.

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