Search News
For the Media
For media inquiries, call CWA Communications at 202-434-1168 or email comms@cwa-union.org. To read about CWA Members, Leadership or Industries, visit our About page.
Six Million Workers at Risk of Losing Overtime
At least 6 million U.S. workers still stand to lose their right to overtime pay beginning next month, in spite of an aggressive union campaign that forced the Department of Labor to make changes to its final rule governing who's eligible for overtime.
"Whether you look at version one of the rule changes or version two, you have to reach the same conclusion," said Ross Eisenbrey, Economic Policy Institute vice president and policy director and the author of a new analysis of the rules. "The administration is intent on handing a huge windfall to employers, one that will be paid for out of the paychecks of millions of workers."
In another new report, three former DOL officials who worked on wage and hour law in both Republican and Democratic administrations reached a similar conclusion. They said the new rule exempts "more classes of workers and a greater proportion of the workforce overall" than Congress intended when it passed the Fair Labor and Standards Act in 1938.
In issuing the rule, they said the DOL "fails to protect and promote the interests of working people consistent with its core organizational mission" and noted that the changes specifically fail to clear up confusion about which workers should be eligible for overtime pay.
Senator John Kerry said the reports show clearly that the new rules, "represent a shameful assault on the paychecks of hard-working Americans" and pledged that a Kerry-Edwards administration "will waste no time in reversing this affront to millions of workers, and in restoring their fundamental right to get overtime pay whenever they work more than 40 hours a week."
Democrats and moderate Republicans in the U.S. House have been pushing Republican leaders to follow in the Senate's footsteps and allow a vote on the overtime issue before the rule goes into effect Aug. 23. The Senate passed a measure in May that would bar the DOL from taking away anyone's overtime rights.
The House is scheduled to adjourn next week until after Labor Day, and it is unclear whether Republican leaders will allow any action on overtime, meaning the rule would become law during the recess.
An EPI analysis last year projected that under the original proposal at least 8 million workers would lose overtime protections. Other economists and lawyers said the number was likely much higher. CWA and other labor unions lobbied Congress and led a national campaign to make people aware of the issue, urging them to contact lawmakers and the Labor Department.
"Our members and staff did an exceptional job of getting the word out and their hard work forced the Department of Labor to take some of the teeth out of this despicable measure," CWA President Morton Bahr said. "But the final rule still makes it abundantly clear that the Bush administration is determined to help its corporate friends at the expense of working families across our country.
Specifically, EPI found that:
** Nearly 2 million administrative workers will lose overtime rights under a rule change that makes "team leaders" ineligible, even if they don't supervise others on the team.
** A change in the definition of "learned professional" will cost 920,000 workers their right to overtime, even though they don't have college degrees.
About 1.4 million workers will be exempt by being reclassified as executives, even though their work involves few supervisory duties.
Others who will lose overtime rights include 130,000 chefs, sous chefs and cooks, 160,000 financial services workers and 117,000 nursery school teachers and computer programmers.
"Whether you look at version one of the rule changes or version two, you have to reach the same conclusion," said Ross Eisenbrey, Economic Policy Institute vice president and policy director and the author of a new analysis of the rules. "The administration is intent on handing a huge windfall to employers, one that will be paid for out of the paychecks of millions of workers."
In another new report, three former DOL officials who worked on wage and hour law in both Republican and Democratic administrations reached a similar conclusion. They said the new rule exempts "more classes of workers and a greater proportion of the workforce overall" than Congress intended when it passed the Fair Labor and Standards Act in 1938.
In issuing the rule, they said the DOL "fails to protect and promote the interests of working people consistent with its core organizational mission" and noted that the changes specifically fail to clear up confusion about which workers should be eligible for overtime pay.
Senator John Kerry said the reports show clearly that the new rules, "represent a shameful assault on the paychecks of hard-working Americans" and pledged that a Kerry-Edwards administration "will waste no time in reversing this affront to millions of workers, and in restoring their fundamental right to get overtime pay whenever they work more than 40 hours a week."
Democrats and moderate Republicans in the U.S. House have been pushing Republican leaders to follow in the Senate's footsteps and allow a vote on the overtime issue before the rule goes into effect Aug. 23. The Senate passed a measure in May that would bar the DOL from taking away anyone's overtime rights.
The House is scheduled to adjourn next week until after Labor Day, and it is unclear whether Republican leaders will allow any action on overtime, meaning the rule would become law during the recess.
An EPI analysis last year projected that under the original proposal at least 8 million workers would lose overtime protections. Other economists and lawyers said the number was likely much higher. CWA and other labor unions lobbied Congress and led a national campaign to make people aware of the issue, urging them to contact lawmakers and the Labor Department.
"Our members and staff did an exceptional job of getting the word out and their hard work forced the Department of Labor to take some of the teeth out of this despicable measure," CWA President Morton Bahr said. "But the final rule still makes it abundantly clear that the Bush administration is determined to help its corporate friends at the expense of working families across our country.
Specifically, EPI found that:
** Nearly 2 million administrative workers will lose overtime rights under a rule change that makes "team leaders" ineligible, even if they don't supervise others on the team.
** A change in the definition of "learned professional" will cost 920,000 workers their right to overtime, even though they don't have college degrees.
About 1.4 million workers will be exempt by being reclassified as executives, even though their work involves few supervisory duties.
Others who will lose overtime rights include 130,000 chefs, sous chefs and cooks, 160,000 financial services workers and 117,000 nursery school teachers and computer programmers.