Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, just a parliamentary inquiry: I understand we are on the FSC bill, and we are on an amendment that has been laid down; is that correct?…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, just a parliamentary inquiry: I understand we are on the FSC bill, and we are on an amendment that has been laid down; is that correct?
I thank the Chair.
America is stuck in a jobless recovery and this jobless recovery is not an accident. It is in large measure the result of failed economic policies, policies that the administration stubbornly clings to despite the loss of nearly 3 million private sector jobs over the last 3 years.
This administration has embraced outsourcing. It is against extending unemployment insurance for the long-term unemployed. It is adamant against raising the minimum wage. And it is determined--any day now--to eliminate time-and-a-half overtime pay for millions of American workers.
It is time for Congress to step in and chart a new course. It is time for Washington to listen to ordinary working Americans. They are telling us loudly and clearly that their No. 1 issue is economic security. They are telling us that they fear losing their jobs, health care, and retirement.
Now they also fear losing their right, which has been their right since 1938, to time-and-a-half compensation for work over 40 hours a week. They fear, with good reason, that under the Department of Labor's new rules, they will be obligated to work a 50-, 55-, 60-hour week with zero additional compensation. For millions of working Americans and their families, this is unacceptable. It is, indeed, the last straw.
Accordingly, at the appropriate time, I will offer an amendment to this bill that will stop the administration from implementing its proposed new rules to eliminate overtime pay protection for millions of American workers.
This amendment will be very familiar to my colleagues. Late last year a similar amendment I offered passed the Senate by a vote of 54 to 45. It was endorsed in the House by a vote of 226 to 203. It also won the overwhelming support of the American public. Yet despite this clear expression of the will of Congress and of the public, my overtime amendment was stripped from the omnibus appropriations bill in conference.
Today this overtime amendment is back by popular demand. It amazes me that wherever I travel, anywhere in the country, people come up to me to talk about this overtime issue. They know now what the administration is trying to do. They are upset. Working families are angry and they want action. They want us to take action to stop the implementation of these new rules that will take away their protection so that they can get time and a half when they work overtime.
Frankly, at this point the administration has zero credibility on this issue. The Department of Labor claims that it simply wants to give employers clear guidance as to who is eligible for overtime pay. But ordinary Americans are not buying this happy talk. They know that the administration is proposing a radical rewrite of the Nation's overtime rules. They know these new rules will strip millions of workers of their right to fair compensation.
The people are right. They are correct. Plain and simply, the new overtime rules are a frontal attack on the 40-hour workweek, pushed aggressively by the administration without a single public hearing. Yes, that is correct. Last year these proposed rules came out, drastically changing our overtime pay protections, the rules that had been implemented since 1938, without one public hearing anywhere in the United States.
These new proposed rules could effectively end overtime pay in dozens of occupations, including nursing, police officers, firefighters, clerical workers, air traffic controllers, social workers, journalists. Indeed, the new criteria for excluding employees from overtime are deliberately vague and elastic so as to stretch across vast swaths of the workforce.
Listen to Mary Schlichte, a nurse in Cedar Rapids, IA:
Many nurses just like me work long hours in a field with
very stressful working conditions and little compensation. .
. . Our patients rely on us. Our families depend on us. We
need overtime pay so we can stay in the profession we love
and still make our ends meet.
Ms. Schlichte told me about her Cedar Rapids nurse colleagues who also rely on overtime pay. One nurse is married to a struggling farmer. She relies on her overtime pay to cover their insurance premiums. They already fear losing their farm, and now they fear losing their health care coverage also.
Dixie Harms is a longtime trainer of nurses in Des Moines. Ms. Harms told me:
If overtime is changed for hospital nurses, we will see a
mass exodus of registered nurses from the hospital setting
because they will get fed up and refuse to volunteer so many
hours to what they really love doing.
Two and a half years ago, after the terrible September 11 attacks, many in this body spoke eloquently about the heroism of our firefighters, police officers, public safety workers. Ever since, America's first responders have worked long hours to protect us from terrorists threats. But now the administration apparently wants to deny them time-
and-a-half compensation for those longer hours. Simply put, this is wrong.
Since passage of the Fair Labor Standards Act in 1938, overtime rights and the 40-hour workweek have been sacrosanct, respected by Presidents of both parties. But nothing, it seems, is sacred to this administration when it comes to workers' rights.
For 65 years, the 40-hour workweek has allowed workers to spend time with their families instead of toiling past dark and on weekends. At a time when the family dinner is becoming an oxymoron, this standard is more important than ever.
These radical revisions are antiworker and antifamily. Given the fact we are stuck in a jobless recovery, the timing of this attack on overtime could not be worse. It is yet another instance of this administration's economic malpractice.
Bear in mind that time-and-a-half pay accounts for some 25 percent of the total income of Americans who work overtime. With average U.S. incomes declining, the proposed changes would slash the paychecks of millions of American workers.
Moreover, the proposed new rules are all but guaranteed to hurt job creation in the United States. This is basic logic. If employers can more easily deny overtime pay, they will push their current employees to work longer hours without compensation.
With 9 million Americans currently out of work, these proposed regulations will give employers yet another disincentive to hire new workers. Why hire a new worker if you can get your present workers to work overtime and not have to pay them time and a half? That would be cheaper than hiring a new worker.
It is bad enough to deny 8 million workers their overtime rights, but what is really striking about these proposed rules is the mean- spiritedness of the language included in these proposed rules from the Department of Labor.
For example, the department is offering employers what amounts to kind of a cheat sheet--helpful hints on how to avoid paying overtime to the lowest paid workers, the same workers who are supposedly helped by the new rules.
Let me be clear about this. There is a part of the proposed changes that we all support, and that is raising the minimum pay level by which a worker would not be exempt from any overtime rules. For example, right now, if you make below about $7,000 a year, no matter what your job is, you cannot be exempted from overtime, from overtime rules--even if you are a professional or if you fall into one of the exempt categories. If you make below about $6,900 or $7,000 a year, you have to be paid time and a half overtime, no matter what your job is. The administration is proposing to raise that to about $21,900, close to $22,000 a year. It has not been raised for a long time, so that is all well and good. But, in so doing, the administration has put out technical advice to employers on how they can get around paying the lowest paid workers time and a half.
For example, the department suggested in writing that an employer might cut a worker's hourly wage so that any new overtime payments will not result in a net gain to the employee. It also recommends if the worker's salary is close to the threshold, you might want to raise their salary slightly to meet that threshold and then their protection for time and a half would end, and then they could be exempt.
This is kind of disgraceful. This would be like the IRS putting out advice to would-be scofflaws, or people or entities that might want to get around paying their fair share of taxes, telling them how to avoid paying their taxes, saying here is how you can effectively cheat. What would we say if the IRS started putting out advice to employers, saying here is how to get around paying your fair share of taxes?
That is what they are doing on overtime. They are putting out advice to employers, saying here is how you get around it. It is disgraceful. There is one part of this new proposed rule that I find probably more disgraceful than just about anything. I know that when I say this, people are going to say: Harkin, this cannot be right, this cannot happen.
The more I dig into the nuts and bolts and fine print of this proposed rule for changing overtime, the more astounded I am at what we are finding, in terms of who is now being exempted, or trying to be exempted from overtime pay.
Would you believe it if I told you that the administration, for the first time since 1938, is changing the rules to make it harder for veterans to get overtime pay than their counterparts who did not serve in the military? Let me repeat that. Mr. President, generally, people would not believe me if I told them this administration, in their proposed rules, is making it harder for a veteran to qualify for overtime than someone who didn't serve in the military. People say: Harkin, that cannot be right.
Read the proposed regulation. I have the old one. Here is the old rule that covers overtime pay. There is a section called ``Learned Professions,'' and it is talking about who basically would be not barred from exemption. It talks about members of the professions, such as graduates of law school and different things like that. It says here the word ``customarily'' implies that in the vast majority of cases a specific academic training is a prerequisite for entrance into the profession. It makes the exemption available to the lawyer, the chemist, and things like that. But it does not in any way mention veterans in the old rule. There is no mention of veterans.
Here is the new rule. I have it blown up on the chart. It says:
However, the word ``customarily'' means that the exemption
is also available to employees in such professions who have
substantially the same knowledge level as the degreed
employees, but who attained such knowledge through a
combination of work experience, training in the Armed Forces,
attending a technical school.
Et cetera, et cetera. These words, ``training in the Armed Forces'' have never been in the rules before. In other words, since 1938, we have gone through World War II, the Korean war, cold war, Vietnam war, the gulf war, Dominican Republic war, Grenada, and a whole bunch of other things. And our veterans--people who have served in the military, who went in there, who the Army asks to ``be all that you can be in the U.S. Army.'' How many ads do we see enticing young people to come into the military because they can get training which will increase their ability to earn more money later on in life, after they get out of the military--specialized training that will make them more desirable in the workforce?
Well, guess what. They are running those same ads to be all you can be, learn a specialized training, and be more valuable in the workforce, and at the same time the administration is promulgating a rule saying: Wait a minute, if you get training in the Armed Forces, guess what. You are now covered under this new rule that says you can be exempted from the overtime pay protection because now you fall into the same kind of category as lawyers and architects and people who went to school for a long time to receive specialized training.
Again, don't take my word for it. Read it. ``Training in the Armed Forces''--those five words have never been in the rules before, never. We said before if you get training in the Armed Forces, you can now be exempt from overtime pay. That is what is coming down the pike. That is what is in these rules. That is why so many of us feel so strongly that this proposed overtime rule should not be adopted.
According to the proposed rules, employers can consider specialized training and knowledge gained in the military as equivalent to what is learned in professional schools. This will allow employers to reclassify veterans as ineligible for overtime. I started looking at some of the comments made regarding this. I wondered where it is coming from. Here are comments on behalf of the Boeing company:
Boeing observes that many of its most skilled technical
workers received a significant portion of their knowledge and
training outside the university classroom, typically in a
branch of the military service, where through a combination
of classroom training and field experience they become
``learned experts'' on very sophisticated aerospace products
or services. Oftentimes, such experts are actually more
knowledgeable than colleagues with advanced degrees--
Master's degrees and Ph.D.s.
and are viewed by the customers as the company's experts on
the product. Boeing thus supports the Department's--
That is the Department of Labor--
focus on the knowledge used by the employee in performing her
job, rather than the source of the knowledge or skill.
What Boeing is saying is we have a lot of people who work for us who got their training in the military. They have become skilled in their profession. But because they did not go to graduate school, because they got their training in the military, we still have to pay these people overtime. We have to pay them time and a half, and we do not want to pay them time and a half. We want to treat them just like Ph.D.s and all those other people. So, therefore, they support the proposed rule change that would allow them, Boeing, to reclassify these former veterans as being exempt from overtime pay protections.
This is a letter from Thomas Corey, the national president of the Vietnam Veterans of America:
Therefore, we would like to make you aware that the
proposed modification of the rules would give employers the
ability to prohibit veterans from receiving overtime pay
based on the training they received in the military. . . .
The proposed rule changes will make these veterans and their
families unfairly economically vulnerable in comparison with
their non-veteran peers.
Let me repeat that:
The proposed rule changes will make these veterans and
their families unfairly economically vulnerable in comparison
with their non-veteran peers. We hope you will agree that the
men and women who have served our Nation so well in military
service should not be penalized for having served.
That is Thomas Corey, national president, Vietnam Veterans of America. I think that is the crux of it. You could have two people, both skilled in a certain area, let's say aerospace or whatever it might be. One got his training in the military and one got his training in some other way outside the military. So the person outside the military would be covered under overtime. The person who served in the military would not be covered by overtime.
I wish someone would make some sense out of that. It is just a slap in the face to the men and women who served in the military and were told: Be all you can be, get specialized training in the military, but what they are not telling them is once you do that, they are going to take away your right to overtime pay once you get out of the military.
This is outrageous--outrageous not just to our veterans but to most Americans. Veterans organizations are deeply disturbed by this, not just the Vietnam veterans but all veterans organizations.
Picture this: The Commander in Chief has mobilized thousand of reservists and National Guard troops from Iowa and from across America. They left their regular jobs as police officers, firefighters, nurses, clerical workers, on and on, and are deployed in Iraq for a year or more. But if the administration has its way, when these troops come back home from Iraq or wherever to resume their civilian jobs, they are going to find that if they received specialized training in the military, they have been stripped of their right to time-and-a-half overtime pay.
It is punishing veterans precisely because they were dedicated soldiers who pursued specialized instruction and training while in the military. The Department of Labor is preparing quite a welcome home present for many of the guardsmen and reservists returning from Iraq. It might read this way:
Dear Returning Veteran: While you were away we reclassified
your job so that you no longer qualify for time-and-a-half
overtime pay. Thank you for serving our country.
There is another group I talked about last year--and it is still true this year--who are disproportionately harmed by the proposed new overtime rules--women.
The fact is, women tend to dominate in retail services and sales positions which would be particularly affected by the new rules. Married women in America increased their working hours by nearly 40 percent from 1979 to 2000. As women have increased their time in the paid labor market, their contribution to family income has also risen. These contributions are especially important to lower and middle-income families--important for housing, health care, heating bills and, of course, for sending kids to school.
Yet now the administration's new rules would take away overtime protections from millions of American women. Women in the paid workforce would be forced to work longer hours for less pay and, of course, this means more time away from families, more childcare expenses with no additional compensation. Not surprising, prominent women's groups are adamantly opposed to the new overtime rules.
The American Association of University Women, the National Organization of Women, the National Partnership for Women and Families, the YWCA, and Nine to Five, and the National Association of Working Women are all strongly supporting my amendment to stop the administration from implementing these new overtime rules.
There is a broader context to this discussion of overtime. There is a bigger picture. As I said, the No. 1 issue for Americans today is economic security, and with good reason, because it is abundantly clear that America is stuck in a jobless recovery.
Since this administration took office, nearly 3 million private sector jobs have been lost, including one in every seven jobs in manufacturing. George W. Bush has presided over the largest job loss of any President since Herbert Hoover. Yet the President remains wedded to policies that are making the problem worse. He remains wedded to policies that are destroying jobs, driving down wages, and threatening the economic security of the American people.
A couple of weeks ago, the White House issued its annual economic report signed by the President explaining why we should welcome the ``offshoring'' of U.S. jobs. The President's top economic adviser assured us that the outsourcing of high-end, white-collar jobs to Asia is ``a plus for the economy in the long run.''
The President's economic report praises the virtues of a ``level playing field for goods and services,'' arguing that when a good or service is produced more cheaply abroad, it makes more sense to import it than to make or provide it domestically. That is from the President's report.
We have a very serious question to ask ourselves: Do we really want American workers competing on a ``level playing field,'' head to head with factory workers in China working for 20 cents an hour, with software engineers in India working for $10,000 a year, going head to head with countries that employ abusive child labor to make products?
In reality, is this not a race to the bottom, with nations competing to slash salaries and benefits in order to win more jobs? Outsourcing is not the only thing hurting job creation and suppressing wages. These new overtime rules will have the same effect. Eight million workers will be stripped of their right and their protection to overtime pay.
Of course, the employers can deny overtime pay. As I said, they simply push their current employees to work longer hours without compensation. This is a powerful disincentive to hire new workers. So as with outsourcing, the idea of sending so many of these jobs overseas, where they are paying 20 cents an hour, no health benefits, no retirement benefits, no Social Security, no environmental protections, killing overtime pay is the same thing. Just keep in mind if an employer can work an employee more than 40 hours and not pay time and a half, we can see that an employer would then say, well, why should I hire new workers? I will just work my present workers longer. If I can get 4 or 5 more hours a week out of each employee and not pay time and a half overtime, that is better than hiring somebody else.
That is exactly what this proposed overtime rule is all about. It is terrible for job creation. I do not know why this administration does not see that. Yet in the face of facts, in the face of all of the reports we have gotten, in the face of what Americans are saying, which is that they want their overtime protected, the administration is surging ahead. They are going to strip people in this country of their right to overtime pay.
Since we have had no public hearings on it, we are not certain why the administration is doing this. Why are they moving ahead with the most profound change in our overtime laws since 1938? Now, I use my words carefully. I said the ``most profound change.'' There have been changes in overtime rules and laws since 1938,
since the Fair Labor Standards Act was passed, of course. Many occupations that existed then no longer exist, and they were taken off. I understand.
New occupations came in like computer software writers, computer engineers, which were not around in the late 1930s, 1940s, 1950s, or 1960s. So there have been changes.
Every time we have made a change in the overtime rules, we have done it through open hearings, through open collaboration between the administration and Congress and labor, all working together to do what is right for our people and our country.
So, yes, we have made a number of changes since 1938, but as far as my research shows, this is the first time since 1938 that an administration has made this profound a change, and it is the first time since 1938 that the administration has proposed these changes without having one public hearing. It is the first time since 1938 that any administration, Republican or Democrat, has proposed changes such as this in the overtime rules without consultation and working closely with Congress to develop a consensus as to what has to be done.
I am left with, perhaps, some conclusions: The administration really does not want to create a lot of new jobs; that by driving down labor costs, perhaps we can increase corporate profitability. It allows corporations to export cheap labor overseas with outsourcing. The administration puts pressure on U.S. workers to accept lower wages, less generous benefits, longer working hours. This is true of outsourcing, and it is true of eliminating overtime.
Right now, American workers work longer than any workers in any industrialized country in the world. We now work longer than workers in Japan, Germany, Great Britain, and our neighbor to the north, Canada. Guess what we are being told. Guess what our workers are being told by this administration. That they are going to work even longer, and they will not have any right to overtime pay.
There is more. The President refuses to extend benefits for the long- time unemployed, and opposes any increase in the minimum wage. It has been frozen at $5.15 an hour for years. This is not a living wage; it is a poverty wage. It keeps downward pressure on wages all across the spectrum.
All this means, again, is fewer jobs for U.S. citizens. It means downward pressure on wages for all of our workers.
Something is missing. What is missing is ordinary, hard-working Americans are not participating in this so-called economic recovery. More and more Americans live in fear of losing their jobs, their health benefits, and losing their retirement. The truth is, we cannot build a sustainable recovery by exporting jobs, by driving down wages, and by making Americans work longer hours without compensation.
Moreover, such a recovery, if it even could take place, is not desirable. As one individual said, my time with my family in the evenings and on the weekends is premium time. Yes, I work during the week to make a living, but the time with my family is premium time. If I am going to be asked to give up my premium time with my family, do I not deserve to have premium pay, time and a half, something out of the ordinary?
As this person said to me, I get my wages, which are ordinary, for my ordinary working hours that I have agreed to work, but I should not get ordinary pay for my premium time, which is the time I spend with my family. That is why I say a recovery that means that our American workers are going to work longer, spend more time away from their families, and not get paid any more for it is not a desirable recovery.
A true recovery must include all working Americans. It can only be built on a foundation of good jobs with good wages in America, not overseas. It can only be built on a foundation that includes a minimum wage that is a living wage, not a poverty wage. It can only be built on a foundation that preserves American workers' rights to time and a half overtime pay.
Shortly, I will be offering this amendment. Obviously, this FSC bill is touted as a JOBS bill. That is all well and good. Let us have an open and good discussion about that. We have some amendments to offer that a number of us believe will help increase jobs in this country. The one I will be offering will be protecting the overtime rights of American workers. So I am hopeful we can move on to that.
On this issue, the administration ignores the pleas of the public. It has brushed aside the clear wishes of both Houses of Congress. Last year, we passed the amendment in the Senate to disallow the Bush regulations on taking away overtime pay protections. The House emphatically approved of that. Yet it was stripped out in conference. Again, this is not acceptable. I hope we can have a strong bipartisan vote in support of my amendment that would disallow taking away overtime pay protection for American workers. We can save the administration from making a terrible mistake. We can protect American workers' time-honored right to overtime compensation, and we can support an economic recovery that includes all Americans, a recovery that respects and preserves the American way.
I yield the floor.