Overtime Wage Rules Change - KCBD NewsChannel 11 Lubbock

8/23/04

Overtime Wage Rules Change

It's the first major overtime overhaul in 50 years. This is a case where the federal government is trying to help lower income families. However, after further investigation, it's the middle class Americans who could be the ultimate losers of overtime wages.

The following is a statement released by the U.S. Secretary of Labor Elaine Chao: "We know that overtime pay is an important part of a families pay and so we're going to be sure that overtime is strengthened and guaranteed to workers so they will enjoy greater overtime protection."

What she doesn't tell you is who is not eligible to receive overtime pay anymore. Anyone who earns more than $100,000 a year is not eligible. If you make more than $23,600 a year but your job has been classified as administrative, professional or executive, you are not eligible to receive overtime pay.

Labor leaders in Washington say that an estimated 6 million Americans will lose overtime wages based on these new rules.

Worksource Director Rocky Brown says they have 70 employees. Four of them where not eligible to receive overtime. But after the rules passed, 14 more are now exempt. He says for the business he's in, not many employees will lose out on overtime money because employees there work a typical 9 to 5 job. "The person I can see who's going to be the most excited will be that manager or supervisor earning under $23,000 a year. That being the case, that person could be working 80 hours or less than that. But now that employer will be required to pay overtime," said Brown.

Those who are guaranteed overtime pay are workers paid hourly, and those who earn under $23,600 a year. Also, first responders like police, EMS, firefighters, and some licensed practical nurses are guaranteed overtime pay.

Nurses who are paid more than $23,600 year, may be as exempt.

If you would like to read more on the new overtime security rules ( click here).

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