Labor Dept. Plans To End Overtime Controversy in March
Changes Will Affect Who Gets Time-and-a-Half Pay

By Kirstin Downey
Washington Post Staff Writer
Friday, January 2, 2004; Page D01

The Labor Department plans to issue a controversial final rule changing the Fair Labor Standards Act's overtime provisions by the end of March, according to a regulatory plan published by the agency last week in the Federal Register. The rule, which would redefine who must receive overtime pay, has drawn opposition in the House and Senate by many Democrats and some Republicans.

"We've said all along we hoped to have a final rule completed by the first quarter of 2003, and that's still our plan," said Victoria A. Lipnic, assistant secretary of labor for employment standards. She hinted that the rules may be modified somewhat to reflect concerns raised by critics but would not be more specific.

"We're certainly not deaf to Congress and to the debate in Congress and what members of Congress are hearing from their constituents," Lipnic said.

She said that the 1938 law needs to be revised and updated because the economy today is different from when the law was enacted and that confusion over who should qualify for overtime has led to lawsuits. Changes in the overtime rules eventually could affect millions of workers nationwide. About 11 million workers received overtime pay in 2002. The administration has proposed changes that would end mandatory overtime pay for many who now qualify but would expand overtime coverage to other workers.