Congresswoman Linda T. Sánchez Believes New Overtime Regulations Hurtful To Middle Class Families

August 19, 2004
Press Release
WASHINGTON, D.C. -- Congresswoman Linda T. Sánchez today expressed opposition to the new regulations on overtime pay, which will take effect on August 23, and will cut the pay and lengthen the hours for workers making as little as $23,660. Middle-income workers making between $23,660 and $100,000 will feel the greatest impact of the regulations. A recent study by the Economic Policy Institute shows that this will deny overtime rights to at least six million workers, at a time when household incomes are down and prices are up.

“These regulations will result in a pay cut for working Americans. Four years ago, overtime pay accounted for about a quarter of the income of employees who worked overtime. Now, the new law is telling workers: Your extra work isn’t worth extra pay. The regulations I voted against will hurt workers in California, from pre-school caretakers to restaurant supervisors,” said Congresswoman Sánchez.

Nationwide, the regulations deny overtime pay to 30,000 nursery and pre-school teachers, 1.9 million supervisors in fast food restaurants, lodging establishments, and retail stores, and more than 900,000 employees without a college or graduate degree who, because of hard work and experience, would be left out. In addition, anyone designated a “team leader” on a “major project” by their employer would be denied overtime as well, even if they are not a supervisor, which could strip nearly 2.3 million workers of their overtime earnings. The regulations also deny overtime to 160,000 workers in the financial services industries, 130,000 chefs, and 87,000 computer programmers.

“These regulations add insult to the injuries inflicted on middle class families over the past years. We need an overtime rule that rewards working people who are willing to put in the late hours and sacrifice to provide for their families. Now is not the time to be giving less to the people who work the most, ” said Congresswoman Sánchez.