(The following article by Kirstin Downey was posted on the Washington Post website on January 6.)
WASHINGTON — 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 month 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 2004, and that’s still our plan,” said Victoria Lipnic, assistant secretary of labor for employment standards.
Lipnic hinted that the rules may be modified somewhat to reflect concerns raised by critics, but she would not be more specific.
She said that the 1938 law needs to be revised and updated because the economy is different from when the law was enacted. She also said there was confusion over who should qualify for overtime and that has led to lawsuits.
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.
Sen. Arlen Specter (R-Pa.), chairman of the Senate Appropriations subcommittee on labor, health and human services, and education, said he intends to call a hearing on the issue on Jan. 20, the day the Senate goes back into session.
He said he wants a full airing of the debate, including testimony by employers, workers, Labor Department officials and economists, to bring “some clarity” to the proposal.
“I believe we need a revision of the regulations, but this is a bad time to be cutting back on overtime when so many workers are relying on overtime for their sustenance,” Specter said.
Specter said his efforts to discuss the issue with Bush administration officials had been fruitless.
“I’ve been in touch with the White House, but so far there’s no give,” he said.
Labor advocates have vowed to keep fighting the proposed changes, either through legislation or litigation.
“Nothing is off the table as far as we’re concerned,” said Christine Owens, the AFL-CIO’s public policy director.
The Bush administration announced its plan to rewrite the Fair Labor Standards Act in March. In the fall, the House and Senate voted to quash the proposal, which critics say could result in 8 million American workers losing their right to time-and-a-half pay when they work more than 40 hours in a single week.