The Truth About The Ovetime Law Change
Bush is coming under criticism for changing overtime laws. However, from some stuff I saw while working labor and employment at a law firm, I knew there was more to the story - I just haven't had the time to condense my thoughts into one post. Mark at Polipundit just saved me the trouble with this thoughtful post. Here is the key excerpt, although I urge you to read the whole thing:
The old regulations were completely antiquated, having been written in 1949, additionally the last time the pay scale was adjusted was 1975. So what do the new regulations do? They "raise the salary threshold -- below which workers would automatically qualify for overtime -- from $155 a week to $425 a week, or $8,060 per year, to $22,100 per year The impact of this revision will be to increase the wages of 1.3 million lower-income workers and reduce the number of low-wage salaried workers currently being denied overtime pay." Additionally, under the new rule, any worker receiving a salary of less than $20,000 will be eligible for overtime, regardless of his or her job duties.
So why the opposition from the Democrats and their cronies in the AFL-CIO? Look no further than John Edwards. The current regulations are so complex and Byzantine they provide a small industry for trial lawyers looking to sue businesses who categorize their employees mistakenly. These can be turned into class action suits which in turn mean a hefty profit for lawyers.
Good job Mark.