Weakening of Overtime Rules Imminent as Controversy Rages - April 5, 2004 Vol.5, No.7

April 5, 2004 Vol.5, No.7:

Published: 04/05/2004

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Weakening of Overtime Rules Imminent as Controversy Rages

The Bush administration’s controversial effort to change the rules governing overtime pay, which could eliminate overtime rights for many workers, could be realized soon, although congressional Democrats and labor groups continue to try to stop the new rules before they can be issued.

The Department of Labor has sent its final rule to OMB for its review, which can hold the rule for up to 90 days -- or can just as easily approve it within a matter of days.

The latest effort by congressional Democrats to halt the new rule is an amendment to a bill that would repeal export tax breaks ruled illegal by the World Trade Organization. That bill has stalled, however, as Senate Republicans seek to avoid an embarrassing wrangle on the overtime issue. Senator Bill Frist (R-Tenn.) publicly claims that the bill has frozen because of the sheer number of Democratic amendments, which cover other issues such as a refundable child credit that would be funded by the repeal of the export tax breaks. Meanwhile, Frist now seems to be willing to let Sen. Tom Harkin (D-IA) offer the amendment to stop the overtime rule if the Democrats agree to cut back on other amendments.

Labor groups, meanwhile, continue to press the issue, having established a website dedicated to fighting the overtime rollback, launching rallies, and circulating petitions.