Government to Look at Updating Overtime Rules

Heeding the complaints of business, the Bush administration is revamping decades-old labor regulations in a way that could force many higher-income Americans to work longer hours without overtime pay.

It argues that the pillars of American labor law, which established the 40-hour workweek, a minimum wage and overtime pay, are antiquated.

The Labor Department says low-wage workers could see an income boost under its plan. But labor unions fear that changes would severely restrict who is required to be paid for overtime.

The changes are confined to a section of the 1938 Fair Labor Standards Act that defines blue- and white-collar workers and determines who must be paid an hourly rate of time-and-a-half for working beyond 40 hours a week. About 80 million workers now are covered by the rules.

Under current regulations, employees are only exempted from overtime pay if they meet several criteria, including salary, management and other administrative responsibilities, and whether jobs require advanced “intellectual” skills and training.

Under the salary test, last updated in 1975, workers earning more than $8,060 a year may be exempt. The administration wants to raise that salary level.

At the same time, however, the department is clarifying and simplifying job descriptions and duties tests. That could move many higher-paid workers into the exempt category.

Employer groups complain that under the complex rules involving job duties and salary levels, many highly skilled, well-paid professional workers are required to get overtime pay.

The Labor Department is expected to issue the rules for public comment before April. Congressional action is not required.