Overhauling overtime

Bush administration proposals that would expand the number of lower-wage jobs eligible for overtime pay but possibly reduce eligibility of middle-income, white-collar employees—such as restaurant unit managers and assistant managers—have won support from foodservice trade associations

Under the U.S. Department of Labor's proposed update of the Fair Labor Standards Act, the threshold below which workers qualify for overtime (hours worked beyond 40 per week) would rise from $155 a week to $425. However, changes that revise what duties can exempt jobs from overtime pay are drawing dissent. Labor unions are concerned that foodservice operators will classify staff with culinary training as "professional employees" and all employees with managerial duties as "executives," making them ineligible for overtime.

The National Restaurant Association issued a statement that it "strongly supports" the revisions, calling existing rules "outdated and confusing." Terrie Dort, president of the National Council of Chain Restaurants, called an overhaul of existing rules "long overdue" to decrease wage and hour litigation. Dort conceded the higher minimum salary below which overtime must be paid could be a hurdle for many employers in areas where salaries and costs of living are lower.

At a news conference, AFL-CIO Secretary-Treasurer Richard Trumka complained that "taking away overtime pay isn't just bad for individual workers, it's bad for the economy as a whole. Taking away overtime pay will kill jobs."