(Reuters circulated the following story by Thomas Ferraro on September 10.)
WASHINGTON, D.C. — A divided U.S. Senate defied a White House veto threat on Wednesday and voted to block proposed federal work rule changes that foes say could cost millions of Americans their overtime pay.
The Republican-led chamber approved a Democratic amendment that would derail a proposed expansion of overtime exemptions for white-collar workers under the 1938 Fair Labor Standards Act. The vote was 54-45.
Yet the final fate of the Bush administration proposal remained unclear, as it still faces a number of procedural and possible legal twists and turns.
The administration, along with the business community, argued the proposed changes are needed to update antiquated work rules.
Opponents, who include labor unions, say the changes would unfairly strip workers of overtime protection and allow companies to make them work longer than a 40-hour week without additional compensation.
The Senate vote came on a Democratic amendment that would deny any funding for the proposed changes. The amendment was attached to a broader $138 billion spending bill for U.S. health, labor and education programs.
Before it could become law, the House of Representatives would have to give its concurrence, and both chambers would have to override any presidential veto with a two-thirds vote.
Earlier this year the Republican-led House narrowly defeated a similar amendment, but proponents are hopeful that the Senate action will give it new momentum.
There is plenty of confusion and debate over how many and what type of workers would be affected by the proposed changes.
The Labor Department estimates no more than 644,000 employees would lose overtime protection. But the liberal Economic Policy Institute and other critics put the figure at more than 8 million.
In addition, the Labor Department contends the changes would affect only white-collar employees and not manual workers or fire-fighters, police officers or nurses. Yet critics have argued the proposed changes could be interpreted to strip many of them of overtime protection, too.
The Fair Labor Standards Act created the 40-hour work week by guaranteeing overtime pay, at time and a half, for each hour worked over 40. The law allows for the exemption of administrative, professional and executive workers.
Under the Labor Department’s new proposal, more employees could be reclassified as exempt administrators, professionals or executives — provided they meet certain criteria.
In addition, employees earning more than $65,000 a year could be exempt if they meet one or more of the duties for an executive, administrative or professional employee.
(Additional reporting by Andrew Clark)