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are the new overtime rules going to affect you?

by sammy2    Aug 29, 2004, 7:19 PM

The new overtime rules will better protect some low paid "managers" at places like McDonalds and Wal-Mart by raising the minimum salary for exempt employees to $23,660. But the net effect will be to reduce the number covered by overtime protections by an estimated 6 million employees. One of the most senseless changes would exempt employees who volunteer to be "team leaders" for projects aimed at improving productivity or customer service.

President Bush's "flextime" proposal would no longer guarantee time and one-half pay beyond 40 hours, as has been the nation's standard for over 60 years. Instead, employees could receive compensatory time off . They could also be denied overtime if they worked less than 80 hours in any consecutive two week period. But there is a hitch. By doing so they will forfeit the wage premium they would have otherwise received for the excess hours. In effect, this amounts to a wage cut and an incentive for firms to "ask" employees to work longer hours for less pay.

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