Congresswoman Jan Schakowsky, Ninth District, IL

 

 

 
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Press Release
 

AUGUST 23, 2004
 

SCHAKOWSKY: BUSH ADMINISTRATION MISSTATEMENT OF THE DAY – 
OVERTIME PAY REGULATIONS
 

WASHINGTON, D.C. – U.S. Representative Jan Schakowsky (D-IL) issued “The Bush Administration Misstatement of the Day” on overtime pay regulations.

Defending the Bush Administration’s new overtime pay regulations that went into effect today, Alfred Robinson, director of the Labor Department’s wage and hour division, said, “We view this as a step in the right direction for bringing clarity and certainty to this area of the law so there can be greater compliance.  And that’s good for employers and employees.” (New York Times, “Controversial Overtime Rules Take Effect,” 8/23/04) 

A report released by the Democratic Staff of the House Appropriations Committee and the Education and the Workforce Committee last month, however, concluded that the Bush Administration’s overtime regulations are actually a step in the wrong direction.  The report titled “Overworked, Underpaid, and Under Attack:  The Bush Administration Plan to Deny Overtime Pay to Six Million Americans” states: 

According to a recent analysis by the Economic Policy Institute (EPI), at least 6 million workers – some of whom earn only $5,000 more than a poverty income – will lose their overtime rights under the Administration’s final overtime rule.  The same analysis concludes that only about 400,000 low-income workers – not the 1.3 million low-income workers claimed by the Administration – will gain overtime protection due to an increase in the protective salary threshold. In other words, the number of workers who will be harmed under the Administration’s rule is nearly 16 times greater than the number of workers who will benefit.
In addition, the report found that the regulations would deny overtime pay to 30,000 nursery and pre-school teachers, 1.9 million low-level working supervisors in fast food restaurants, lodging and retail stores, and more than 900,000 employees without a college or graduate degree who would become “professional employees” because employers will be able to substitute work experience for a degree.
 


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