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Fatter paychecks for many who work overtime

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."

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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.

-- Updated: Aug. 20, 2004
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Five ways to stretch your paycheck
10 ways to maximize your salary
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