The Bush Administration is proposing to revamp labor regulations in an overhaul that could force many of the FDIC’s employees (and other business and government workers) to work longer hours without overtime pay. The administration argues that the American labor laws which established a 40 hour work week, a minimum wage and overtime pay, are "antiquated." The changes will severely restrict who is legally required to be paid for overtime work.

Currently nothing prohibits employers from requiring as many hours as they want…but, they are required to pay overtime at one and one half the regular hourly wage unless the employees are exempt from the applicable rules. The common exemption within the FDIC is staff which has been determined to be attorneys, accountants, and economists.

The overtime changes are confined to a section of the 1938 Fair Labor Standards Act that defines blue collar and white collar workers and determines who must be paid an hourly rate of time and a half for working beyond 40 hours a week. Under current regulations, employees are only exempted from the overtime rules if they meet several criteria, including salary, management and other administrative responsibilities and whether jobs require advanced "intellectual" skills and training.

NTEU previously won a hard fought battle through the arbitration process with the FDIC to secure this benefit for all employees not identified in the definition which now exists. However, this change will redraw those lines and will affect a sizable portion of the FDIC bargaining unit. The administration is targeting employees whose job duties and salary levels include, "highly skilled, well-paid, professionals." The administration is being encouraged by the Chamber of Commerce.

The new rules are scheduled to be released for public comment at the end of March. However, Congressional action is not required…so the Department of Labor can issue the rules without the approval of Congress.

I have been in contact with NTEU National Legislative Department to insure comments will be made by the NTEU. Additionally, our Chapter may shortly be calling on you to assist in defeating this effort by writing your Congressman and U. S. Senators. Even though Congressional approval is not necessary Congress may be able to cause the Department to pause before it issues such ill-advised rules.