Media Statement

NELP Opposes Proposed Changes to Fair Labor Standards Act
Many Low-Wage Workers Will no Longer be Entitled to Overtime Pay

For Immediate Release: June 30, 2003
Contact: Sarah E. Massey, 212 285-3025 ext.109

To view NELP's full comments, click here.

Today, comments are due to the Department of Labor on newly proposed overtime changes to the Fair Labor Standards Act.  The proposed changes, coming in the wake of the failed Republican-led effort to permit employers to force workers to work overtime for comp time instead of pay, are an example of the Bush Administration’s utter disregard for American workers and their families.   The National Employment Law Project opposes the changes – the new rules undermine worker protections that stave off employer demands for uncompensated overtime work.    The fair labor standards system protects workers from employers who would otherwise demand longer work weeks.  It is the backbone of the American workplace.  Workers get paid for the hours they work; and, if they are being asked to work over 40 hours, they are compensated at a premium hourly rate.  Low wage workers, who comprise a disproportionate and growing share of the workforce and who are increasingly having trouble making ends meet, would suffer greatly from the proposals. 

Current Fair Labor Standards Act Overtime Rules and the “White-Collar” Exemptions
Overtime is the time a person works over 40 hours a week.  Overtime pay is a worker’s hourly pay rate plus half the rate, commonly known as time-and-a-half.  Overtime rules protect workers from being forced to work longer hours without compensation, and are designed to encourage employers to hire more workers to get the job done instead of over-working fewer employees.

Some workers are exempted from overtime rules.  “White-collar” workers, who include those in administrative, executive, and professional jobs, are exempted.  Under these exemptions, if you are paid on a salary basis and make more than $155/ week, you can be exempted by your employer as long as you are a bona fide executive, administrative, or professional employee.  For years, employers have wanted to expand this group of workers so they will not have to pay overtime.  The Bush Administration is now proposing expanding these exemptions to include many low-wage workers who will no longer be entitled to overtime pay. 

Proposed Fair Labor Standards Act Overtime Rules
The proposals give employers much more leeway in how to categorize workers for overtime eligibility.  If enacted, employers will be able to over-work many workers earning as little as $22,100 a year without paying time-and-a-half. 

Under the proposed rules, eight million hardworking American workers will lose their overtime pay.  The rules would expand the number of people who will not get overtime pay, including the lowest wage earners in fast food, restaurants, and service jobs.  Employers will demand that these newly-exempt workers work overtime without pay.  The proposed system is unfair and completely at odds with the purposes of our nation’s fair labor standards law.

These rules hurt hardworking Americans.  More and more American workers are finding it difficult to make ends meet and now many more will be excluded from overtime pay while being required to work more hours. Workers will earn less, because they will not receive time-and-a-half, but may be required to work more by their employers.  It is only fair that people who work over full-time should be compensated for it and be able to support their families.  The 40-hour workweek is becoming a thing of the past, and with it, the American dream of supporting our families and having time to spend with each other. 

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