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Overtime
law does not benefit workers
The
"Fair pay" initiative, which went
into effect Aug. 23, has changed the rules
for overtime wages.
Now,
fewer workers are eligible for overtime
pay when working more than 40 hours a week.
Many managerial jobs are denied overtime
pay and those who influence hiring and firing
are also denied the extra cash.
The
idea behind creating the law was to provide
clarity as to who is able to receive overtime.
The Bush administration claims that more
people will be eligible for overtime pay,
but critics claim just the opposite.
Recently,
employees successfully sued several large
companies, including Farmers Insurance Exchange,
Wal-Mart and Radio Shack, for not paying
overtime. The Labor Department says the
new law will clear up the confusion as to
who qualifies for overtime pay and should
cut down on lawsuits. According to the Administrative
Office of the U.S. Courts, class action
lawsuits regarding wage laws have grown
by 230 percent since 1997.
The
popularity of the topic and its importance
to all Americans will probably move the
issue into the presidential race, giving
all sides another topic to spew about.
The
Bush administration claims that the initiative
will allow more workers overtime who have
been denied the compensation until now.
This includes low-wage workers. But critics
are convinced that too many American workers
will not qualify for overtime under the
new rules.
Those
who earn less than $455 per week will have
overtime protection according to BBC News.
Republicans and Democrats alike are finding
problems with this law. Some state that
the new rules will hurt those making more
than $455 per week and even those making
less, because the law is written chock-full
of loopholes.
The
previous overtime law gave time and a half
to each hour over 40 per week. The old law
did not cover everyone, however. Administrative
and executive bodies were exempt based
on certain duties held. That still holds
true with the revised law. Anyone who leads
a team of employees to complete major projects
could be exempt. This statement is very
broad and could exclude millions.
The
administration created a long list of jobs
that will be covered by new regulations.
Large companies, including the United States
Chamber of Commerce, support the passing
of this law, while unions are angry.
The
Labor Department's summary recommends that
employers adjust the hourly rate to include
overtime or stick to a 40 hour workweek.
If the hourly rate were adjusted, workers
would work more hours for the same amount
of money to compensate for the pay difference.
This is not a happy set-up for employees.
Jobs
that have no set overtime qualifications,
such as journalists and insurance claims
adjusters, may lose the possibility of earning
overtime. Workers can be reclassified as
"team leaders" or "learned
professionals" and thus lose their
overtime pay.
The
Department of Labor insists that the new
laws will clear blurred lines for workers
to know their rights, and allow better protection
of workers' wages. The D.O.L. Website states
that more police, firefighters, paramedics
and public safety employees will have stronger
overtime rights than before.
For
many college students, the weekly salary
is earned from part-time work and fits right
into a loophole. Those who have worked
their way into management jobs may lose
their overtime to reclassification. This
is an important shift in labor laws and
workers need to pay attention to this and
future legislation that directly affects
workers.
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