Would Bush Eliminate Overtime Pay for 8 Million? (kerry's a LIAR)

FACT CHECK .ORG ^ | 3/5/04 | UNKNOWN

[GailA]

Would Bush Eliminate Overtime Pay for 8 Million?

A TV ad from an anti-Bush group says so. But it's based on a study that actually says something different.

March 5, 2004

The latest TV ad from the Moveon.org Voter Fund says "George Bush wants to eliminate overtime pay for 8 million workers," referring to new overtime rules that the Department of Labor has proposed. The 8-million figure (hotly denied by the Bush administration, of course) comes from a study by the labor-funded Economic Policy Institute.

The ad misquotes the study, however. What the study actually says is that an estimated 8 million would lose the legal right to premium overtime rates should they work more than 40 hours per week. It does not say they would actually lose pay as the ad says. In fact, the 8-million figure is inflated by many part-time workers who never get overtime work, or overtime pay, even though they now have the right to it.

[GailA]

fyi

[Bahbah]

Thanks GailA for getting the word out.

[Seth1]

Well, I am pretty sure my wife would lose her overtime pay. It would actually make the job insufficient. She works a good 50 hours a week.

[lelio]

I believe Kerry & Co's 8 million number as much as I believe Elaine Chao's figuring that 1.3 million workers will gain overtime rights.

[Sacajaweau]

This gives overtime pay to the lower bracket folks. There are many folks who are salaried and do not get overtime. The law doesn't make it "mandatory" that the upper brackets be stripped of overtime and it ain't gonna happen.

[ontos-on]

Admittedly,I am in a hurry. And I am thhankful for this factcheck site. But I read it and still do not know what the story is about. What will be the proposed changes in OT rules? The $425 vs. $155 figure went over my head. Look, I am only a lawyer, but oculd someone explain this in plain English. I'll check back later. Thanks.

[WhyisaTexasgirlinPA]

The typical spin and lie from the Democrats -

[Mr. Bird]

The proposal has a couple of features, and it is essentially trying to build flexibility into 70 year old wage and hour laws that don't address modern business (and employee) needs.

Yes, the proposal does eliminate the legal requirement for premium pay for hours in excess of 40/week. The employer is given the option of granting leave ("comp time") in lieu of the premium pay. This does a couple of things: it allows businesses with large fluctuations in activity to employ more regular employees without risk of layoffs (benefit to employees) and it helps the employer avoid massive labor costs during regularly scheduled, as well as unexpected, peaks.

The reality is that most occupations would retain their premium pay, because employers know that eliminating for most jobs is the same as massive pay cuts. They'd lose their labor force to competitors willing to continue with the premium pay. But for seasonal occupations, it would allow an employer to hire people full time with benefits and not go through layoffs during lulls in production, and prevent the hiring of temporary or contract work during peaks.

[Buckeye McFrog]

The Kerry Solution....an ironclad government mandate for time-and-a-half overtime, followed by a 50% tax increase.

[SpinyNorman]

Is it too simplistic to think that if a job requires overtime to complete, it could similarly be completed by a different worker, thus creating jobs?

[Mr. Bird]

Is it too simplistic to think that if a job requires overtime to complete, it could similarly be completed by a different worker, thus creating jobs?

That was FDR's thinking. Premium pay was not created to reward employees; it was created to encourage businesses during the Depression to hire more people (by punishing them for working people more than 40 hours).

It is simplistic in the sense that it would only create a job if it consistently required excessive hours. But even if a job always takes 50 hours, that's only a .25 FTE in excess. Hardly a job creating machine.

[GailA]

An increase in OT work I think is the forerunner of increased employment. Many companies will temporarily increase OT while the assess the need to add employees. OR to cover when vaccation or sick leave for other employees are needed. Hubby got 2 OT days in the last 2 weeks, because another employee was on vaccation. They are short handed by 3 as is due to retirement and 1 move away. City of Memphis PD is looking for FCC licensed and EXPERIENCED radio repair techs. They look first in-house, then will look city wide. The key is having at least some experience. Just having a FCC license won't net you the job. It must be FCC licensed, Neighbor's cert is not considered...it's like a GED.