Small effects
I call this "Small effects" because, though it appears the full impact of the desired changes has been blunted, no one should mistake affecting the system with reforming it.
Quote of note:
Michael Eastman, director of labor policy for the U.S. Chamber of Commerce, said he was disappointed that the Labor Department had increased overtime eligibility for "highly compensated" workers making $65,000 to $100,000 a year.
"But we're hopeful there are other improvements in the regulations that will help us in other ways," Eastman said. "Politics is a process of compromise, and any changes over the current law are better than nothing."
Another quote of note:
The Labor Department received more than 75,000 letters during the public-comment phase of the process, and thousands more since, with many writers critical of the Bush administration for making changes workers feared would cost them money or force them to work longer hours. Employer groups and the administration had argued the rules were a much-needed update of regulations issued in 1938, when the U.S. economy was much different.
Oh, yeah, the article…
Plan Expands Eligibility for Overtime Pay
By Kirstin Downey
Washington Post Staff Writer
Tuesday, April 20, 2004; Page A01
The Labor Department will allow workers who earn up to $100,000 a year to be eligible for overtime pay, a substantial shift upward from an earlier proposal that Democrats had promised to make an issue in the presidential campaign.
More low-wage workers would become automatically eligible for overtime under the final rules, due to be released today, according to Labor Department documents describing the regulation. Police, firefighters, paramedics, emergency medical technicians and licensed practical nurses will also be assured of eligibility for overtime pay if they work more than 40 hours a week.
The overtime rules, which haven't been revised in 50 years, have become a major subject of political dispute. The changes have been avidly sought by a wide coalition of business groups. But both houses of Congress voted last year to block the Bush administration's attempt to issue the rule because of controversy over the number of workers who might be adversely affected.
A research organization that focuses on labor issues estimated that the proposed changes would cost up to 8 million workers their chance to earn overtime. Labor Secretary Elaine L. Chao has countered that the original rules would cost fewer than 1 million more highly paid workers their overtime checks, while expanding overtime eligibility to millions of lower-wage workers.
The changes to be announced today amount to a more generous proposal for workers on both ends of the pay scale.
