GOP to Advance Bill Undermining American Workers’ Overtime Pay, House Subcommittee Learns Today
WASHINGTON – A Republican bill expected to make its way through the House of Representatives would force an unnecessary choice between overtime pay that workers rely on and time off that they may never be able to take advantage of, the Workforce Protections Subcommittee learned today.
“This legislation is based on smoke and mirrors. It pretends to offer the time off people need when they need it, but in fact, it is a pay cut for workers without any attendant guarantee of time,” said Judith Lichtman, senior advisor to the National Partnership for Women & Families. “It also sets up a dangerous, false dichotomy between time and money when, in fact, working families need both.”
The House Republican bill (H.R. 1406) would give employers the ability to offer compensatory time off in exchange for any overtime wages the worker has earned. For instance, under current law, if an hourly employee is paid at 1.5 times the rate of their wage for hours worked more than 40 hours in a week. However, under this bill, the employer can take all of those wages earned above 40 hours and put into a pot for future time off that is controlled by the employer. In other words, the worker would not get paid for the work they perform during their current pay period. Unused time would be paid back at the end of the year, amounting to a no-interest loan to employers from workers.
“Working families deserve better than a bill that forces them to choose between overtime pay and the family-friendly policies they desire,” said Rep. Joe Courtney (D-Conn.), the ranking member of the subcommittee. “We should be looking at ways to give workers more power over their lives, not hand over hard-fought rights won by workers to their employers.”
Despite some claims by those who want to upend the nation’s overtime protections, current law permits employers to design family-friendly policies that allow workers to earn paid-family or sick leave if they choose.
“Under current law, employers are already free to grant paid or unpaid leave to employees. This bill just provides a way for employers to pay workers less in the name of workplace flexibility. It is a tired discussion,” said Courtney.
Democrats have introduced a number of proposals to provide needed family friendly leave policies without taking away workers’ overtime rights. Among those proposals is the Healthy Families Act (H.R. 1286), which allows workers to earn up to seven paid-sick day as year and use it when they need it.
“The Healthy Families Act is a much more effective solution than H.R. 1406 in providing workers with the time they need to care for their loved ones and themselves. It guarantees employees the ability to use that time off while respecting employers’ needs for stability in their business operations,” said Lictman.
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