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Fatter paychecks for many who work overtime
By Laura
Bruce Bankrate.com
Critics of the revised rules say the government's
estimates of extended overtime protection are off.
"The department says 1.3 million workers who
earn less than $23,660 will get overtime. Our preliminary estimate,
we think the number is a lot closer to 300,000 or 400,000 employees,"
says Jared Bernstein, senior economist at Washington, D.C.-based
Economic Policy Institute.
Law less clear, say critics
"The purported goal was to simplify and clarify. But that's
not what occurred. You have over 500 pages of nuanced rules changes.
The most important ones are the duties changes -- how workers are
classified vis-a-vis overtime protection of their duties at work.
They could be moved from an hourly position to a salaried position
where they don't qualify for overtime. Instead of an assistant chef
they're called creative first chef. It's title inflation."
McCutcheon says an employee's title couldn't be changed
without also changing the employee's duties.
"They can't deny you overtime unless you meet
a series of duties tests. We updated the tests to reflect the federal
court case law of the last 50 years, which interpreted our regulations
and reached conclusions on modern-type jobs. The duties tests are
equally or more protective than current law."
The AFL-CIO has been a sharp critic of the final rules,
which it says in a news release will eliminate "overtime pay
for a huge swath of middle-class workers -- many who make as little
as $23,600 a year. This has to be one of the biggest pay cuts in
American history. It's a huge windfall for large corporations."
The AFL-CIO did not respond to repeated requests for
interviews.
Law won't put attorneys out of business
Gregg Kronenberger, a labor and employment attorney at the Austin,
Texas, office of Jenkens & Gilchrist, says the revisions help
the working people more than they help the employer.
"The employer can benefit from the regulations
being easier to read and they might not have to fight as many lawsuits.
But over a million employees who were exempt before won't be now.
The rules are easier to read and the preamble gives a lot of guidance
on how the department expects it to be interpreted. It's a change
that's long overdue."
Todd Leeson, a lawyer who also represents corporations
in his practice at Gentry, Locke, Rakes & Moore in Roanoke,
Va., says the revision is a major step but there will still be litigation.
"I think the DOL has done the best job they can
to give us modern examples and better guidance, but this won't solve
all the tough questions as to whether someone's exempt or not."
The Department
of Labor Web site makes it easy to read the regulations, and
also categorizes information by exemption and occupation. If you
believe that you have been unfairly denied overtime or haven't been
paid the minimum wage, a section guides you through the complaint
process.
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