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June
11, 2003
Eliminating Overtime
Pay?
A
Republican Attack Americans Will Remember at Election Time
By DAVID LINDORFF
If ordinary working people needed some hard evidence
that this Republican government in Washington is not on their
side--that it is, in fact, out to get them--they finally have
it in a very simple form: the effort in Congress to eliminate
overtime pay.
It's easy for Bush and Republicans in
Congress to trick people into supporting a massively regressive
tax cut package. They offer crumbs to the middle class while
handing out hundreds of thousands of dollars in tax breaks to
the rich, and everyone thinks it's a good thing. But the bill
now being considered in Congress, which will make it much easier
for employers of people making less than $65,000 a year to take
away their overtime pay is a straight-forward, unambifuous screw
job.
For years, during both Republican and
Democratic administrations, the government has been chipping
away at the 40-hour week, one of the central victories of the
labor movement during the early years of the 20th Century. They
exempted salaried people, they exempted people classed as management
even if their salaries were pathetic. Still, up to now most people who work
for a living could count on getting time and a half for being
required to work more than a 40-hour week (or in some professions,
like trucking, for having to work more than an eight-hour day).
The purpose of the overtime law, known
as the Fair Labor Standards Act, was to create an economic disincentive
both to discourage employers from overworking their employees,
and to encourage them to hire more people. The idea was, if you
wanted your employee to work longer, it would cost you more.
Employers, particularly in the latter
half of the 20th century, when health and other benefits became
more common, hated the idea of time and a half pay for overtime.
They didn't want to have to hire more workers, because then they
had to pay more healthcare benefits, and more unemployment insurance
if they had to later lay people off in slower economic periods.
Yet if they didn't add employees, they had to pay time and a
half to existing workers to get the job done. Not surprisingly,
the U.S. Chamber of Commerce, National Association of Manufacturers
and other business lobbying organizations have been lobbying
to get rid of overtime for a long time.
The irony is that employers in the ever
more dominant service sector--touted by business lobbyists as
the reason that overtime pay is obsolete--don't really face much
in the way of extra costs for hiring extra employees these days
anyway, since so few of them employ people full time these days,
or pay them benefits. Still, the very idea of having to pay time
and a half to workers sticks in the craw of most employers, who
seem anxious to return to the good old days of the 19th Century.
With Republicans in charge of both houses
of Congress, and Bush in the White House, they see their opportunity
to do just that, and they're pushing hard for it now. (At this
rate, we'll probably see them pushing next for an end to child
labor bans.)
The U.S. labor movement is fighting a
rear-guard battle against the bill, but the odds are against
them. Only 13 percent of U.S. workers are now in unions, and
half the Democrats in Congress wouldn1t know a real worker if
they saw one. Meanwhile, for Republicans, this bill is red meat.
Weakened as it is, the organized lobbying
effort by the labor movement has scored a victory in the initial
battle. After over 250,000 people contacted their congressional
representatives telling them to oppose the measure, the House
Republican leadership postponed a vote on the bill, fearing
that they didn't have enough votes for passage. They've vowed
to bring it back after they've had a chance to work over those
party representatives who appeared to have defected.
If the measure passes, it will be a huge
financial disaster for the 75 million American workers who are
currently covered by the overtime rules, who stand to lose billions
of dollars a year in pay. While it would not, at least immediately,
change the overtime rules for workers earning less than $22,100
a year, it would hit hard at those earning between $22,100 a
year and $65,000 a year--the pay range within which the law would
allow employers to finagle their way out of paying time and a
half. The trick would be to classify those workers as "professionals"
or "management"--an easy sleight of hand in a time
when the Labor Department, which technically monitors such things,
is a lapdog of management. As well, under the bill, employers
would be free to "offer" workers an option of comp
time in lieu of mandatory overtime.
While the law says employers could not
coerce employees into selecting comp time instead of overtime,
critics say that it would be almost impossible to enforce such
a rule. Employers would have too many ways to retaliate against
workers who made the wrong choice--denial of favored vacation
dates, denial of promotions, etc. Such punishments would be hard
to link to a worker's decision to exercise their right to choose
overtime over comp time.
The U.S. Chamber, a prime mover behind
the drive to eliminate overtime, insists that all it is trying
to do is "clarify the rules," but with billions of
dollars a year in overtime pay at stake, it is clear that this
is really nothing but a power play aimed at wresting a hard-won
New Deal-era right away from American workers in order to fatten
the wallets of management.
This is one Republican power grab that
American voters will not likely forget come November 2004, though.
Indeed, it's November and December--the run-up to the Christmas
holiday season--when most workers earn their fattest paychecks,
thanks to overtime.
If this bill goes into law, this next
Christmas season, and the one following, will see workers coming
home with substantially thinner pay envelopes.
Dave Lindorff
is the author of Killing
Time: an Investigation into the Death Row Case of Mumia Abu-Jamal.
A collection of Lindorff's stories can be found here: http://www.nwuphilly.org/dave.html
Weekend
Edition Features
Alexander
Cockburn
The Terrible Truth
Jeffrey
St. Clair
Going Critical: Bush's War on Endangered Species
Joanne
Mariner
Ashcrofts Sides with Torturers
Steven
Sherman
A Different Theory of Everything
Ron Jacobs
Sports, Politics and the 60s
M.
Shahid Alam
Pauperizing the Periphery
Amelia
Peltz
If This is the Road, I'd Rather be Lost
Shelton
Hull
Another Powell, Another Capitulation
Binoy Kampmark
Nuclear Deterrence and North Korea
Ben
Tripp
A Fish Story
Sen. Robert
Byrd
Where is the Outrage?
Robin
Philpot
Congo Distortions
Julie Hilden
Murder and the Matrix
Laura
Flanders
An Interview with Isabel Allende
David Lindorff
The Last Byline
Adam
Engel
Talk Dirty Scary Monsters
Poets'
Basement
Kearney, Reiss, Guthrie, Albert and Hamod
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