Two basic changes would be made under the plan. First, workers earning up to $22,100 a year would automatically qualify for overtime pay. This is an increase from the current rate of $8,060 a year. Also, the plan would create changes in job classifications, specifically for those who are considered executives, administrators, and professionals, a group of employees that have been exempt from overtime pay.

Organized labor groups report that the change would give more lower paid workers the opportunity to earn overtime pay. At the same time, it could also cause some employees to lose their overtime pay due to job classification changes.

The administration hopes to finalize the proposal by the beginning of next year and revise the rules under the Fair Labor Standards Act. When the proposal is formally introduced, the public will have 90 days to comment on the rules.

Publication date: 04/07/2003