Chamber Welcomes White-Collar Overtime Reform

WASHINGTON, D.C. – The United States Chamber of Commerce commended the Department of Labor for completing a long-overdue reform of the nation's white-collar overtime regulations.

"Although we are disappointed in some of the provisions, these reforms provide clearer guidance to both employers and workers on their rights and responsibilities under wage and labor laws," said Randel K. Johnson, Chamber vice president for labor, immigration and employee benefits. "They also address many of the fundamental problems in the previous, outdated regulations that led to numerous compliance questions and needless lawsuits."

Since 1954, America's overtime regulations have not significantly changed, making the regulations obsolete and the source of much, costly litigation. According to the Administrative Office of the US Courts, class action litigation on wage and hour laws has grown by 230 percent since 1997 alone.

In describing the Labor Department's action, the Chamber pointed to a September 1999 recommendation from the nonpartisan General Accounting Office that the Labor Department launch a comprehensive review of antiquated overtime regulations with a goal of reforming them to better address the realities of the modern workplace.

"For 25 years, every administration has made reform of these regulations a priority, but none has been successful until now," Johnson said. "Secretary Chao and the Labor Department are to be commended for completing these important reforms."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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