Future of DOL's Overtime Amendments Uncertain

In what appears to be a victory for organized labor, the House recently approved a Senate-passed provision that would block the Department of Labor's (DOL) proposed expansion of overtime exemptions for white-collar workers under the Fair Labor Standards Act (FLSA). In a 221-203 vote, the House approved a procedural motion that instructs lawmakers to stop the DOL from taking any action that would cause workers to lose eligibility for overtime. The nonbinding motion requires lawmakers to include the provision in the final version of a spending bill that will fund the Departments of Labor, Health and Human Services, and Education for the upcoming fiscal year. See House Approves Procedural Motion to Halt Final Overtime Regulation, Daily Labor Report, October 3, 2003, p. AA-1.

The impact of this motion is unclear. It remains to be seen whether House negotiators will comply and the White House has threatened to veto the entire spending bill if the provision is included.

The debate stems from the DOL's proposal to streamline the tests for determining whether white-collar workers are exempt from the FLSA's overtime requirements. Opponents of the DOL's proposed revision argue that it could deprive more than eight million workers of overtime pay, while the DOL has estimated the number at 644,000. Id.

Additionally, it is not clear whether the motion affects another part of the DOL's proposed amendments to the FLSA, which provides that workers who earn less than $22,100 per year would automatically be eligible for overtime pay. Lawmakers opposing the motion argue that it is so broadly worded that the DOL would be reluctant to do anything affecting workers' rights to overtime pay, while others argue that the motion does not deny the DOL the right to add a single worker to overtime coverage.

The DOL is continuing to work on its proposed revisions and is reviewing public comments that have been submitted.