The fight over the Bush administration’s new overtime rules has been ongoing since the summer. In short, the proposal would make as many as 8 million U.S. workers ineligible for overtime compensation.
There was, however a saving grace to this controversial proposal. While millions would become exempt from overtime coverage, the administration’s plan would make 1.3 million low-income workers, who are currently ineligible for overtime pay, eligible.
Good news, right? Sure, the administration wouldn’t be doing any favors for the 8 million who would lose out, but at least there’d be 1.3 million who would have expanded opportunities for overtime compensation. In total, the administration says, these 1.3 million people would collect nearly $900 million in increased wages. This was a standard GOP talking point on the Hill to make the controversial plan seem more palatable. Except…
Bush’s Labor Department wants to “help” businesses get around this benefit for low-income workers by “suggesting” ways to avoid paying overtime to these newly-eligible employees. (Thanks to Carpetbagger regular Chief Osceola for bringing this to my attention.)
Bush’s Labor Department, for example, is letting employers know that they can cut workers’ hourly wages, for example, and add the overtime to equal the original salary, that way, they won’t have to worry about paying these folks overtime. There are additional suggestions made available as well.
In other words, the Bush administration is touting the wonderful and newly expanded opportunity for overtime pay for these 1.3 million low-income workers and, at the same time, effectively persuading employers to circumvent this opportunity.
Of course, the administration isn’t literally encouraging employers to try and circumvent the new rules. As Labor Department spokesman Ed Frank told the AP, “We’re not saying anybody should do any of this.”
This is my early favorite for the most hilarious quote of 2004. The Labor Department is explaining exactly how to avoid paying low-income workers overtime compensation and then defends the suggestions by saying that the agency isn’t literally encouraging anyone to follow their advice. This is truly hilarious, even by Bush administration standards.
Note to Democratic presidential candidates: Jump all over this one.