
Jan 7th, 2004, 05:31 PM
ADMINSTRATION OFFERS YOUR BOSS TIPS ON SCREWING YOU
This vanished with the three days the board ate, so I'm reposting it.
U.S. offers employers ways around overtime pay
By LEIGH STROPE
Associated Press
WASHINGTON — The Labor Department is giving employers tips on how to avoid paying overtime to some of the 1.3 million low-income workers who would become eligible under new rules expected to be finalized early this year.
The department's advice comes even as it touts the rules by saying workers will get $895million in increased wages.
Among the options for employers: Cut workers' hourly wages so that regular and overtime pay equal the original salary, or raise salaries to the new $22,100 annual threshold, making them ineligible.
Under the old rules, an employee could make as little as $155 a week and still be classified as a "professional" or "white-collar" employee, and thus exempt from overtime. The new rules would increase that annual pay rate to $22,100 from $8,060.
The department says it is merely listing well-known choices available to employers now or under the new rules. "We're not saying anybody should do any of this," department spokesman Ed Frank said.
A final rule that revises the 1938 Fair Labor Standards Act is expected to be issued in March. The act defines the types of jobs that qualify workers for time-and-a-half if they work more than 40 hours a week.
Overtime pay for 1.3 million low-income workers has been a selling point for the Bush administration in trying to ease concerns in Congress about millions of higher-paid workers becoming ineligible.
But the Labor Department, in a summary of its plan published last March, suggests how employers can avoid paying overtime to newly eligible low-income workers.
"Most employers affected by the proposed rule would be expected to choose the most cost-effective compensation adjustment method," the department said. For some companies, the financial impact could be "near zero," it said.
Employers' options include:
# Adhering to a 40-hour workweek.
# Raising salaries to the $22,100 threshold. If employers raise a worker's salary "it means they're getting a raise — that's not a way around overtime," Frank said.
# Making a "payroll adjustment" that results "in virtually no, or only a minimal increase in labor costs," the department said. Workers' annual pay would be converted to an hourly rate and cut, with overtime added in to equal the former salary.
The department does not view the "payroll adjustment" option as a pay cut. Rather, it allows the employer to "maintain the pay at the current level" with the new overtime requirements, said the Labor Department's Wage and Hour Division administrator, Tammy McCutchen, an architect of the plan.
Labor unions criticized the employer options.
Mark Wilson, a lawyer for the Communications Workers of America who specializes in overtime issues, said the Bush administration was protecting the interests of employers at the expense of workers.
"This plan speaks volumes about the real motives of this so-called family-friendly administration," Wilson said. He added that cutting workers' pay to avoid overtime is illegal, based on a 1945 Supreme Court ruling and a 1986 memo by the Labor Department under President Reagan.
But McCutchen disagreed. If changes were made week to week to avoid overtime, they would be illegal. A one-time change is not, she said.
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