Questions and Answers: A Conversation About New Overtime Rules

On September 15, 2004, the Senate Appropriations Committee followed the House and voted to block the Bush administration’s new overtime rules.

Q: Ok, hold on. There are new overtime rules?

A: That’s right. They took effect August 23, 2004. Now, anyone making less than $23,660 a year is eligible for overtime. The old rule established overtime for anyone who made less than $8,060.

Q: So now more people are eligible for overtime?

A: Well, no, because there are other rule changes. For example, teachers, lawyers, and doctors are not eligible for overtime, no matter what they get paid. And employees who earn more than $100,000 a year can’t get overtime, period. In addition, anyone who earns between $23,660 and $100,000 a year and is in an administrative, professional, or executive position is no longer eligible for overtime.

Q: What are considered administrative, professional, and executive positions?

A: Managers who oversee two or more people and have the authority to hire and fire can’t get overtime. Employees who run projects and make decisions can’t get overtime. Employees with jobs that require imagination, invention, or artistic skills can’t get overtime. Employees that analyze, develop, or apply computer systems can’t get overtime. Basically, anyone who creates, manages, invents, or decides can’t get overtime. However, many sales associates are still eligible.

Q: So, if I’m a manager at Seven-Eleven who makes $28,000 a year and works long hours, I’m...

A: Not eligible if you supervise more than two people and help decide whom to hire and fire, which you most likely do.

Q: But you said that the House and Senate recently blocked these rules?

A: Yes. The Senate Appropriations Committee voted 16 to 13 in favor of blocking the new rules. To do this, the committee took a $142 billion spending bill that is up for consideration and attached to it a provision that blocks most of the new rules. But the provision does maintain the change from $8,060 to $23,660 as the maximum salary for automatic eligibility.

Q: What’s the spending bill for?

A: Education, Health, and Human Services departments. But the content of the spending bill isn’t necessarily related. The fact that it’s a compulsory spending bill is the point. It’s hard for legislators to vote against needed spending, even if amendments that they disagree with are attached.

Q: So, both the House and the Senate have blocked the new overtime rules in this way?

A: Yes. In the House, 22 Republicans defied their party and voted to adopt an amendment that would block the Bush administration’s overtime rules.

Q: Why would they do that?

A: They represent voters who don’t want the new rules since they are likely to lose overtime pay. These 22 representatives want to honor their constituency’s wishes and, of course, they want to get reelected.

Q: Did anyone in the Senate vote the way they did in order to get reelected?

A: Yes. On the Senate Appropriations Committee, two Republicans voted to block Bush’s overtime rules. Senator Arlen Specter of Pennsylvania is seeking reelection this year, and his state has a lot of laborers opposed to the new rules. The other Republican, Ben Nighthorse Campbell of Colorado, is retiring and voted his conscience.

Q: So, do we have to worry about the new overtime rules any more?

A: It’s likely that the new overtime rules will continue. The Senate and House versions of the spending bill will go to a committee that works out the differences between the two bills. Although both bills include provisions that block the new overtime rules, Republicans have said that they will remove those provisions in the conference committee, therefore leaving the new overtime rules in tact. The Bush administration has said that Bush will not sign any bill that overrides his new overtime rules.

Q: So why did Democrats bother with trying to block them?

A: In part, it’s campaign strategy. Since a handful of Republicans voted against the new rules, Democrats can say that a bipartisan effort opposed Bush’s overtime re-regulation. John Kerry can and will say that both the House and the Senate voted against Bush’s overtime rules. Overtime is a potent issue; it affects lots of voters, including, for example, computer programmers who have to work all night to correct a problem on a business network and truck drivers who deliver perishable goods.

Q: Why were the rules changed in the first place?

A: Many overtime rules are outdated. Some have gone untouched since just after World War II, and the labor market has changed considerably since then. Everyone agrees that the rules need updating; it’s how to revise the rules that’s controversial.

Q: How do I find out more about overtime and about jobs, taxes, and benefits?

A: WomenMatter tracks these Life Issues. To find out more about overtime, click here. To read more about jobs, taxes, and benefits, click here. You can also sign up for an e alert, and we’ll send you emails when we have updates on this issue.

Q: What if I want to discuss this issue with other women like me?

A: Easy. Log on to one of our online forums, and discuss with other WomenMatter readers who share your concerns.

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A: No problem. You can register to vote through WomenMatter - click here to begin. To research and contact your representatives, click here.

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Article Posted on: 9/21/2004