Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘overtime pay’

The GOP Just Got One Step Closer to Taking Away Your Overtime Pay

Friday, May 5th, 2017

Republicans have passed yet another bill that erodes protections for working families.

A bill Republicans have been pushing for years that undermines overtime pay just cleared the House. Called the “Working Families Flexibility Act” (H.R. 1180), it would amend the Fair Labor Standards Act to allow private companies to offer employees “comp” time instead of overtime pay for hours worked beyond a 40-hour work week.

The bill is being sold by Republicans as family friendly and “pro-worker,” allowing workers to take time off to attend to family needs. But Democrats and scores of labor and worker advocacy groups oppose the bill, saying it offers employees a false choice between pay and time off, effectively depriving workers of earned overtime without providing guarantees of family leave or stable work schedules.

The bill passed Tuesday, by a vote of 229-197, with six Republicans joining the 191 Democrats voting “no.” Sen. Mike Lee, a Republican from Utah, has introduced a companion Senate bill (S. 801) but no further action is scheduled. The Senate bill, like the House bill, has no Democratic sponsors. A spokesman for Senate Committee on Health, Education, Labor and Pensions chair Lamar Alexander, who supports the bill, said the senator “hopes to see the bill taken up by the Senate when time allows.”

“With working families across the country scraping to make ends meet, Congress should strengthen protections for workers—not gut protections already on the books,” Sen. Elizabeth Warren, a Democrat from Massachusetts, said in statement. With their vote, she said, “House Republicans are actually voting to make it legal for employers to cheat their workers out of overtime pay. This is a disgrace.”

“This is no substitute for paid sick leave, paid family leave and the genuine protections families need. This is a way for employers to avoid paying overtime,” said National Employment Law Project federal advocacy coordinator Judy Conti.

Other critics, including the American Sustainable Business Council, call the bill “badly designed, with too much potential for abuse by employers.” Concerns include potential wage theft, favoring workers who choose comp time over paid overtime and employees’ inability to use the comp time when they actually need it. A letter from nearly 90 groups opposing the bill notes that the bill provides no guarantee that workers would get their earned overtime if a company goes bankrupt or closes up shop.

The bill would allow employers to hold the cash equivalent of overtime their workers earn. Employees could then take those hours off at a later date or cash out at the end of a calendar year. Employers would also be required to pay workers overtime owed within 30 days of receiving a written request from an employee who changes her mind and wants cash rather than time off.

Analysis by the Economic Policy Institute shows how the bill doesn’t offer workers anything new and could leave them worse off financially. Or, as House Committee on Education and the Workforce Ranking Member, Rep. Bobby Scott, a Democrat from Virginia, said during the bill’s markup, “H.R. 1180 doesn’t give employees any rights they don’t already have … The bill does, however, create a new right for employers to withhold employees’ overtime pay.”

Committee Republicans say workers are being held back now by current rules and that the bill includes “numerous protections” to ensure employee choice. Democrats, however, say it does nothing to strengthen “existing workplace protections” or “flexibility.” Labor groups on record opposing the bill include the Service Employees International Union (SEIU), Restaurant Opportunities Center United, International Brotherhood of Teamsters, National Partnership for Women and Families and the Leadership Conference on Civil and Human Rights.

The legislation comes as the Obama administration’s rule to extend overtime pay to workers making up to $47,476 (double the current limit of $23,660) remains in legal limbo. That rule was expected to benefit more than 4 million workers. The bill also comes while most U.S. workers remain without access to paid family leave.

A recent Pew survey found that in 2016, only 14 percent of U.S. civilian workers had paid family leave, while 88 percent relied on unpaid family leave guar
anteed to those eligible by the Family and Medical Leave Act.

“The so-called Working Families Flexibility Act is not a solution,” committee member Rep. Suzanne Bonamici, a Democrat from Oregon, said in a statement. It’s “long past time,” she said, “that Congress enacted meaningful solutions to raise workers’ wages, increase access to paid sick days and family leave, provide flexible and predictable scheduling.”

This article originally appeared at Inthesetimes.com on May 3, 2017. Reprinted with permission.

About the Author: Elizabeth Grossman is the author of Chasing Molecules: Poisonous Products, Human Health, and the Promise of Green Chemistry, High Tech Trash: Digital Devices, Hidden Toxics, and Human Health, and other books. Her work has appeared in a variety of publications including Scientific American,Yale e360, Environmental Health Perspectives, Mother Jones, Ensia, Time, Civil Eats, The Guardian, The Washington Post, Salon and The Nation.

Workers Say Trump’s Labor Secretary Nominee Is a Habitual Violator of Labor Law

Tuesday, January 17th, 2017

Andrew Puzder, Donald Trump’s nominee for labor secretary, is uniquely unqualified for that job. As secretary, he’d be charged with enforcing health and safety, overtime and other labor laws. But as CEO of CKE Restaurants, the parent company of Hardee’s and Carl’s Jr., he’s made his considerable fortune from violating these very same laws, according to a report by the Restaurant Opportunities Centers (ROC) United released this week.

ROC, which advocates for restaurant workers nationwide, surveyed 564 CKE workers, 76 percent of them women. In discussing the results of the survey, it’s important to note that while ROC surveyed a large number of workers, the respondents are people who chose to fill out a survey distributed by a workers’ rights organization, which they learned about through their social media networks. Still, ROC reported “unprecedented” interest in the survey among workers at CKE and their eagerness to be part of the study, and the experiences they reported, are striking reminders that by tapping Puzder, Trump has made clear that his administration will be a dystopian nightmare for U.S. workers.

A recent national survey among non-managerial women working in fast food found that 40 percent of such women have experienced sexual harassment on the job. Under Puzder, the problem could worsen: A whopping 66 percent of female CKE workers ROC surveyed had faced sexual harassment. Harassment came from supervisors, co-workers or—most often—customers, and took the form of sexual comments, groping, unwanted sexual texts and pressure for dates.

CKE is known for its sexist advertising, which depicts women in skimpy bikinis devouring cheeseburgers. And, certainly, imagery contributes to the culture, but when harassment is as pervasive as it appears to be at CKE, there are usually more structural problems at play. Companies in which women are harassed are generally places in which women—indeed, workers in general—are not valued or respected, and in which workers lack any institutional means to stand up for their rights.

In such companies, women are often not paid and promoted fairly. And, as one might expect, nearly one in five of the CKE workers ROC surveyed said he or she had faced discrimination at work, most commonly on the basis of gender, age or race.

Of the CKE employees who participated in the ROC survey, nearly one-third said they did not get meal breaks that are mandated by law; around one-fourth had been illegally forced to work off the clock or had timecards altered; almost one-third had been illegally deprived of overtime pay.

The ROC survey also found widespread health and safety violations. Nearly one-third of those surveyed said they had become sick or injured on the job. Workers described an environment of slippery floors, frequent grease burns and many said they had to do dangerous tasks—like cleaning a hood over a hot char broiler, for instance—without proper protective equipment.

Appointing Puzder as labor secretary is like inviting Tony Soprano to serve as attorney general. Let’s hope this enemy of working people will face humiliation and defeat when his confirmation goes before the Senate. His hearing, originally set for next Tuesday, may now be postponed until February. That delay would give labor—meaning anyone who works for a living—more time to mobilize against him. Let’s get started.

This post originally appeared on inthesetimes.com on January 13, 2017.  Reprinted with permission.

Liza Featherstone is a journalist and author of Selling Women Short: The Landmark Battle for Workers’ Rights at Wal-Mart and False Choices: The Faux Feminism of Hillary Rodham Clinton. 

Delivery Drivers Sue Amazon Over Misclassification, Failure to Pay Overtime and the Minimum Wage

Tuesday, December 20th, 2016

With wage and hour lawsuits becoming increasingly common across the country, there was little reason for the lawyers at Amazon.com’s Seattle headquarters to be surprised when one landed on their doorstep recently. But they may have been concerned to learn that their newest legal adversary is “Sledgehammer Shannon” Liss-Riordan, a Boston attorney who gained legal fame by beating corporate giants like FedEx and Starbucks in just these kinds of contests.

The new lawsuit against Amazon is similar to one of Liss-Riordan’s best known cases—a suit against FedEx that charged the company was misclassifying delivery drivers as independent contractors when the workers were, as a matter of law, regular employees. Liss-Riordan won that fight and, this year, FedEx announced that it would give up on a series of related legal fights and pay $240 million to some 12,000 drivers in 20 states.

Liss-Riordan took the fight to Amazon in a suit filed October 4 in the U.S. District Court for the Western District of Washington. It charges Amazon and Amazon Logistics Inc. with violating the minimum wage law in Seattle, state labor law in Washington and the federal Fair Labor Standards Act (FLSA).

Liss-Riordan explains that Amazon is experimenting with a delivery system where the company contracts with individuals to use their own cars to pick up parcels at Amazon warehouses and deliver them to local customers. The drivers typically sign up for a specific work shift and are paid an hourly wage. They are not compensated, however, for expenses like gasoline, car maintenance, telephone calls, or other incidentals. When subtracting these expenses, drivers often end up earning less than the minimum wage and are denied overtime pay, she says.

That description of delivery methods was echoed by Stacy Mitchell, co-director of the advocacy group Institute for Local Self-Reliance. Along with co-author Olivia LaVecchia, Mitchell has just completed a major study of Amazon’s business practices that warns that the giant corporation is killing good jobs in local economies as it seeks to monopolize different sectors of the retail business.

“Amazon has substantially expanded its warehouses in recent years and is experimenting with the so-called ‘last mile’ of the delivery system. They are increasingly using on-demand drivers, and also regional couriers, to move goods,” Mitchell says. “In the past, this sort of ‘last mile’ delivery was typically done by the U.S. Postal Service or United Parcel Service. USPS and UPS jobs are good-paying union jobs, and Amazon is undermining these with its gig economy model.”

In These Times reached out to Amazon to comment on the lawsuit. Spokesman Jim Billimoria provided the following response:

“The small and medium sized businesses that partner with Amazon Logistics have their own employees and are required to abide by applicable laws and Amazon’s Supplier Code of Conduct, which focuses on compensation, benefits, and appropriate working hours. We investigate any claim that a provider isn’t complying with these obligations.”

Liss-Riordan says this sort of a defense is typical of large corporations, many of which have lost wage and hour lawsuits in court.

“It’s not what you say that counts, it’s what you do,” she said. “We’ve been able to demonstrate, time and time again, that a lot of these corporations just don’t live up to their stated policies when it comes to real-life employment practices on the ground. That’s why you see more and more of these suits.”

Indeed, a 2015 report from the law firm of Seyfarth Shaw LLP described an “onslaught” of litigation resulting in a record high number of federally-filed wage and hour cases in 2015. According to the firm, there were 8,781 such cases in 2015, compared to only 1,935 in 2000.

Asked about her nickname “Sledgehammer Shannon,” Liss-Riordan laughed out loud.

“It’s sort of silly. Mother Jones magazine did an article last year about a case I have against Uber, and I get a lot of jokes. I don’t care. The fact is, we will take on cases like this and fight them for 10 years if we have to.”

This blog originally appeared at Inthesetimes.com on December 12, 2016. Reprinted with permission.

Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’s Daily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.

Trump’s pick for Labor Secretary is a big ‘screw you’ to the Fight for $15

Thursday, December 8th, 2016

In an otherwise grim period for the U.S. labor movement, the fast food industry has been a hot spot for organizing activity. For the past four years, the union-backed Fight for 15 movement and allied groups have staged a series of nationwide, day-long strikes and protests in support of higher wages and unionization for fast food workers.

Fast food workers have yet to gain any significant union representation. But thanks in large part to the movement’s efforts, states and cities across the country have passed minimum wage laws raising pay for millions of people.

And now, if President-elect Donald Trump has his way, an enemy of the Fight for $15 movement will lead the U.S. Labor Department.

On Thursday, Trump revealed that he had nominated Andrew Puzder, CEO of CKE Restaurants, to be Labor Secretary. CKE Restaurants is the parent company of Hardee’s and Carl’s Jr., two fast food companies that have been targeted by Fight for 15. Puzder himself is on record as an opponent of raising the minimum wage, and has said that he would like to try automating service more service jobs in response to wage hikes.

CKE Restaurants CEO Andrew Puzder, center, departs Trump Tower in New York, Wednesday, Dec. 7, 2016. CREDIT: AP Photo/Andrew Harnik

Unsurprisingly, the fast food lobby was delighted with Trump’s decision to elevate Puzder. International Franchise Association President and CEO Robert Cresanti called Puzder “an exceptional choice to lead the Labor Department” in a statement responding to the news.

Cresanti also offered up a wishlist for Puzder’s early days in office. The Obama Labor Department issue a rule (currently held up in federal court) that would dramatically expand the number of workers eligible for overtime pay. The department has also fought to expand joint-employer liability, meaning that multinational corporations such as McDonald’s may be held legally accountable for labor law violations committed at their franchised locations.

“We are hopeful that, if confirmed by the Senate, a top priority [for Puzder] will be rolling back the damaging effects caused by the expansion of joint employer liability to America’s 733,000 franchise businesses, and the too-far, too-fast increase in the overtime threshold that was recently put on hold by a Texas judge,” said Cresanti.

The progressive National Employment Law Project, on the other hand, described Puzder’s nomination as a “sucker-punch in the gut to all the men and women of good faith who believe in the mission of the U.S. Labor Department.”

“The job of the labor secretary is NOT to strengthen the power of corporations to reap record profits by squeezing every last drop out of their low-wage workforce—and threatening to replace them with machines if they ask for wages they can support their families on,” said NELP Executive Director Christine Owens. “While Mr. Puzder’s qualifications may fit the bill for the latter, those qualifications are anathema to what a secretary of labor should stand for.”

As Labor Secretary, Puzder would head up the main government agency charged with investigating claims of wage theft. A 2016 Bloomberg analysis of Labor Department data found that Hardee’s and Carl’s Jr. restaurants were themselves frequent violators of the law.

CREDIT: Bloomberg BNA

That may be why Fight for 15 organizing director told the American Prospect two weeks ago that appointing Puzder as Labor Secretary would be “like putting Bernie Madoff in charge of the treasury.”

This blog originally appeared in ThinkProgress.org on December 8, 2016. Reprinted with permission.

Ned Resnikoff is a senior editor at @thinkprogress.He was previously a reporter for for International Business Times, Al Jazeera America, and msnbc. Follow him on twitter @resnikoff.

This week in the war on workers: What happens if Obama's overtime expansion is reversed?

Monday, November 21st, 2016

LauraClawson

President Obama’s expansion of overtime pay goes into effect on December 1. But what happens if it gets rolled back in 2017? Here are some of the Department of Labor’s takeaways from a Congressional Budget Office report:

  1. CBO finds that reversing the rule would strip nearly 4 million workers of overtime protections. According to the report, there are nearly 4 million workers whose employers will be required to pay them overtime when they work more than 40 hours a week when the rule goes into effect.
  2. CBO finds that reversing the rule would reduce workers’ earnings while increasing the hours they work. The report finds that if the rule is reversed, the total annual earnings of all affected workers would decrease by more than $500 million in 2017. Further, these workers would earn less money while working more hours.
  3. At a time when income inequality is already of great concern, CBO finds that reversing the rule would primarily benefit people with high incomes. If the rule were reversed, affected workers, most of whom have moderate incomes, would experience a loss in earnings. These losses would be accompanied by an increase in firms’ profits, of which the vast majority (CBO estimates 85 percent) would accrue to people in the top income quintile.
  4. CBO finds that reversing the rule would not create or save jobs. The report finds no significant impact on the number of jobs in the economy.

Nearly 4 million workers.

This article originally appeared at DailyKOS.com on November 19, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

McDonald's settles with franchise workers for $3.75 million in wage theft lawsuit

Tuesday, November 1st, 2016

LauraClawson

McDonald’s is still insisting it isn’t a joint employer of workers in franchise restaurants, but even so, it’s paying out millions to settle a lawsuit over labor law violations by a franchisee:

In a filing in U.S. district court in San Francisco on Friday, lawyers representing about 800 employees at five restaurants owned by a single franchisee said Illinois-based McDonald’s would pay the workers $1.75 million in back pay and damages and $2 million in legal fees. […]

The 2014 lawsuit claimed McDonald’s and the franchisee, Smith Family LP, violated California law by failing to pay overtime, keep accurate pay records and reimburse workers for time spent cleaning uniforms. The franchisee previously settled the claims for $700,000.

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McDonald’s exerts tight control over how its franchisees do things it cares about. That happens not to include little things like obeying labor laws—but because McDonald’s control over how its franchisees do business is so well established, the National Labor Relations Board is moving toward treating McDonald’s as a joint employer. This settlement doesn’t settle that question, but at least these workers are getting a measure of justice.

This article originally appeared at DailyKOS.com on October 31, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

 

Overtime for farmworkers passes California legislature, heads to governor's desk

Thursday, September 8th, 2016

LauraClawson

The California legislature has passed a bill that would give farmworkers the same overtime protections as other workers. Now the question is whether Gov. Jerry Brown, who has not taken a position on the proposal, will sign the expansion from the state’s current law, which requires employers to pay time-and-a-half after farmworkers put in 10 hours in a day or 60 hours in a week. Other workers get, and farmworkers stand to get, overtime pay after eight hours in a day or 40 in a week.

 
Getting this bill passed required serious legislative maneuvering by Assemblywoman Lorena Gonzalez:

The Assembly rejected the proposal in June, when eight Democrats opposed it and another six refused to vote. In what Gonzalez has described as an unprecedented move to revive the bill, she worked around the Legislature’s rules and reinserted the proposal in another bill, angering Republicans who objected to the breach in procedure.

dreamstime_m_55622795

Gonzalez waged a social media campaign to pressure her Democratic colleagues to back AB1066; agreed to compromises to win votes, including giving small farms an extra three years to pay more overtime; and led a squad of Democratic allies in a 24-hour fast paying homage to the weeks long fast that legendary farmworker activist Cesar Chavez staged when the “Salad Bowl” strike of 1970 initially failed.

 

 

Federal law excludes agricultural workers from overtime protections, so California is already ahead—but these workers deserve the same protections and rights as everyone else.

This article originally appeared at DailyKOS.com on August 24, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

This week in the war on workers: More whining about Obama's plan to expand overtime

Tuesday, February 16th, 2016

 

A bunch of congressional Republicans (and two Democrats who should be ashamed of themselves) are very upset that the Obama administration plans to expand overtime pay eligibility. The lawmakers have written a letter to Labor Secretary Tom Perez expressing concern about changes that aren’t even being made, but mostly about the fact that they don’t want people to get overtime pay:

What is in the rule, which the members of Congress who signed the letter don’t like, is a long overdue increase in the salary an employee must be paid if an employer wants to avoid paying overtime. The current rule sets that exemption threshold at $23,660 a year—below the poverty line for a family of four. The proposed rule, as the representatives note, “would raise the salary threshold and require employers to pay overtime for all employees who make $50,440 or less per year.” The signers don’t like that, but the reasons they give don’t hold water.

The letter says the increase in the threshold would suddenly make 5 million employees eligible for overtime pay. That’s true, and it’s a good thing. Making employers pay their employees extra when they work more than 40 hours in a week is the purpose of the Fair Labor Standards Act. It’s good for those employees and their families, whether they get paid more or are simply allowed to spend more time with their families. And because it applies to all employers equally, it will not create competitive burdens.

The representatives claim the proposed salary threshold somehow fails to take into account the fact that “the purchasing power of a dollar is drastically different in various parts of our country.” But the claim is ridiculous. The point of the salary threshold is that workers paid less than this amount—even if they are classified by their employers as managers or executives—are automatically entitled to overtime protections. Essentially, this threshold separates workers with genuine managerial and professional responsibility, who have substantial autonomy over their work schedule and have real bargaining clout with their employers, from those workers who are simply labeled “managers” (often by employers precisely looking to avoid the obligation to pay overtime) but who nevertheless can be compelled to work long hours.

A fair day’s wage

? Workers in Las Vegas’s Culinary Union were denied a permit to protest outside the Palace Station Hotel & Casino, so they were like “fine, we’ll commit nonviolent civil disobedience … “

? A Kentucky judge ruled against a county-level anti-union law.

Wage theft, sexual assault, and no sick leave: The horrible conditions facing poultry workers.

Education

? This is vile behavior to see from a teacher, let alone a teacher whose school has elevated her as a model for others. And before dismissing it as a one-time occurrence, consider that the video was recorded by an assistant teacher who was sick of watching that sort of thing. And that at Success Academy charter schools:

Jessica Reid Sliwerski, 34, worked at Success Academy Harlem 1 and Success Academy Harlem 2 from 2008 to 2011, first as a teacher and then as an assistant principal. She said that, starting in third grade, when children begin taking the state exams, embarrassing or belittling children for work seen as slipshod was a regular occurrence, and in some cases encouraged by network leaders.

A war on teachers in Virginia.

? John Kasich is riding high in the Republican presidential primary, at least temporarily, so let’s take a look at Kasich’s education record.

This blog originally appeared in dailykos.com on February 13, 2016. Reprinted with permission.

Laura Clawson has been a Daily Kos contributing editor since December 2006 and Labor editor since 2011.

Obama Administration Proposes Expansion of Overtime Rights for Workers

Monday, July 13th, 2015

jillian johnson1Millions of workers who have not been receiving overtime pay would become eligible under a newly announced rule change. According to the Economic Policy Institute, the number of newly overtime eligible workers could be as high as 15 million. The change would update what is known as the “white collar” exemption to the overtime pay rules that covers certain executive, administrative and professional employees. Currently, these types of employees can be classified as “exempt” (meaning not entitled to mandatory overtime pay) so long as they are paid a salary of at least $455 per week ($23,660 per year) – an amount that is below the poverty line for a family of four and that has not been adjusted since 2004. Under the new rules, the minimum salary requirement for exempt white collar workers would increase to $970 per week ($50,440 per year) for 2016 and be indexed going forward to keep pace with inflation. Workers whose salary falls below this level would now be classified as “non-exempt” and guaranteed time-and-a-half for all hours worked over 40 per week.

While some big business groups are opposing the proposed changes, claiming terrible economic consequences will result if their labor costs increase; this is nothing new and the same cry that is heard every time they are forced to increase wages. The facts and history do not, however, support their dire warnings. In cities such as San Francisco and Santa Fe where the minimum wage has for years been set well above the federal minimum, and even coupled with other employee benefits such as paid sick leave and health-care, the impacts on employment have been essentially zero. Contrary to the claims of catastrophic job loss and business closing, studies have shown “no measurable” negative effect on employment when cities or states have raised their minimum wage above the federal minimum wage. Historically, increased pay for workers tends to generate a positive feedback loop – workers earn more, spend more, resulting in positive economic activity.

To put the pay figures in perspective, look back 40 years. In 1975 the minimum salary amount was adjusted and set to $250 per week. At that time, 65% of the American workforce was paid less – entitling them to overtime pay. Today, however, a mere 11% of the workforce earn less than the $455 per week minimum. Today, the $250 per week minimum salary would equate to more than $980 per week (approximately $51,000 per year) if it had been annually adjusted per the Consumer Price Index. So, to merely keep middle-class workers in the same economic position they were in as of 1975, the current $455 per week minimum salary would need to be increased to at least $980 per week. This is roughly what is being proposed under the new rules.

The Fair Labor Standards Act (FLSA) was implemented in 1938 to specifically address the serious problems caused by the overworking and underpayment of our nation’s core middle-class workforce. The two primary reasons the FLSA was put into place are:

  • First, to protect against working conditions that are “detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers.”  The law recognizes that employees need some time off to spend with family and relaxing from often stressful work and provides an economic incentive to not overwork employees. If an employer is going to demand work hours that deprive employees of this precious down time, the law places a premium value on such time – a cost that the employer must cover.
  • Second, requiring the payment of time and a-half for all hours over 40 per week creates and strong economic incentive for employers to hire more people and spread the work, instead of overworking their existing staff. This helps to reduce overall unemployment in the U.S. economy, an issue every bit as relevant today as it was 75+ years ago.

The proposed changes to the overtime pay regulations are important to restore fair pay to millions of middle-class workers and are consistent with the overall goals and policy objectives that originally inspired the federal overtime pay laws.

About the Author: The author’s name is Jillian Johnson. Jillian Johnson is a freelance writer from New Jersey who has contributed to an array of blogs of various industries, particularly business, finance and health.  She freelanced for a local NJ parenting magazine “Curious Parents” magazine and wrote for her college newspaper, “The Tower,” ultimately becoming the Editor-in-Chief. Jillian holds a BA in Communications and is currently working towards a BSN.

With New Overtime Rule, President Obama May Have Given an Estimated 5 Million Workers a Raise

Wednesday, July 1st, 2015

David MobergPresident Obama’s administration took another promised step on Tuesday towards raising the living standards of American workers, and Republicans and business groups are not likely to be able to stop it.

Using the administration’s power to update workplace rules regarding premium pay for overtime work, the Department of Labor on Tuesday began taking steps that could bring higher pay or more leisure time to an estimated 5 million middle-income workers by next year.

Business and conservative groups are likely to try to block the new overtime rules with court challenges and legislation, just as Republicans are still blocking President Obama’s modest proposed legislative increase in the minimum wage to $10.10 for low-income workers. But the political and legal winds favor the administration.

There’s a strong legal and factual case for the Department of Labor’s action. The current regulations are grossly out-of-date and out of sync with the intention of the original legislation.  According to administration calculations, the new rules should give at least 5 million middle-income workers a boost in pay if they work more than 40 hours a week or fewer unpaid hours at work and more time for themselves and their families if they are not forced into overtime work.

Now all hourly workers are guaranteed time-and-a-half pay for working more than 40 hours, but the rules do not require employers to pay time-and-half to salaried workers who make over $23,660 a year—even though that is below the poverty line for a family of four. Salaried workers below the threshold are regarded as being social equivalents to hourly workers. In 1975, 62 percent of salaried workers earned beneath the threshold and were guaranteed overtime pay by law, according to Ross Eisenbray of the Economic Policy Institute, but today the threshold only protects 8 percent of salaried workers. The new rules with a threshold of nearly $51,000 a year would provide overtime protection to about 44 percent of salaried workers.

If a salaried worker earns above the threshold and is a bona fide executive, administrative or professional employee, the employer does not have to pay him or her overtime.  But this “white-collar exemption” is now widely abused, and employers give nominal managerial titles and a few administrative tasks to people in order to avoid paying time-and-a-half for more than 40 hours of work.  Christine Owens of the National Employment Law Project, a pro-worker research and advocacy group, also wants the new rules to more adequately define the kind of work that qualifies for the white collar exemption. At this point, the Labor Department has not proposed such revisions in defining who is a manager or professional.

“While we appreciate that doubling the salary threshold will extend overtime pay protections to millions of currently exempt workers,” she wrote in an organizational statement on the rules, “we are concerned that failure to address the existing tests’ vague definitions, laissez-faire approach to the mix of ‘salaried’ and ‘hourly’ duties required for exempt status and other shortcoming threaten to deny far too many workers the overtime pay protections they deserve and the statute contemplates.”  NELP, for example, wants the rules to state that exempt workers cannot spend more than half of their time on non-exempt work.

With unions at their weakest since the 1920s, more public policy action to raise wages is necessary, not only for minimum-wage workers but also for middle-income workers, such as those protected by overtime rules. Also, inequality continues to grow. University of California at Berkeley economist Emmanuel Saez recently calculated  that despite recent growth in income of workers in the bottom 99 percent (an increase of 3.3 percent from 2013 to 2014), top 1 percent incomes grow faster and families in that sliver of the population captured 58 of real income growth per family from 2009 to 2014.

Overtime protection alone won’t reverse that trend, but it will make a real difference in the incomes and quality of life for millions of working families.

This blog was originally posted on In These Times on July 1, 2015. Reprinted with permission.

About the Author: The author’s name is David Moberg. David Moberg, a senior editor of In These Times, has been on the staff of the magazine since it began publishing in 1976. Before joining In These Times, he completed his work for a Ph.D. in anthropology at the University of Chicago and worked for Newsweek. He has received fellowships from the John D. and Catherine T. MacArthur Foundation and the Nation Institute for research on the new global economy. He can be reached at davidmoberg@inthesetimes.com.

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