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House Republicans vote to extend keep-away rules for overtime pay

Date Posted: July 7 2006

LANSING - Many Michiganians who work as salespeople, nurses, or truck drivers - among several other types of occupations - currently are not eligible for mandatory overtime pay under federal law.

And Michigan's Republican House members want to hammer home that rule in this state, under the guise of saving employers money and reducing layoffs. On June 20, the GOP-dominated Michigan House passed legislation that would continue to block thousands of workers from being eligible for overtime pay.

The bill passed along straight party lines, 57-49, with all Republicans in support and all Democrats against.

"In these tough economic times, overtime pay is how thousands of working men and women make ends meet so they can better care for their families," said House Democratic Leader Dianne Byrum (D-Onondaga). "Republicans should stop protecting the status quo and stand up for our working families instead."

House Bill 6213 now goes to the Michigan Senate, which is also dominated by Republicans.

"Without this piece of legislation employers will be forced to eliminate the jobs altogether because they cannot afford to pay the added expense," said State Rep. Bill Huizenga (R-Zeeland), chair of the House Commerce Committee. "In a time when Michigan's economy is struggling to gain traction and compete against surrounding states and foreign nations, that would be a huge step backward. This bill is critical to protecting jobs and preventing outsourcing in Michigan."

Gov. Jennifer Granholm, who holds veto power over the bill, isn't inclined to approve the measure. Her spokeswoman, Liz Boyd, said the administration is "still assessing the impact" of the bill but does not "see a need for this legislation."

Republicans have tied this bill to counteract the passage earlier this year of a statewide minimum wage increase. The minimum wage increase will go from the current $5.15 per hour to $6.95 per hour on Oct. 1, and finally to $7.40 per hour on July 1, 2008. The state rules limiting worker classifications that can get mandatory overtime pay will expire when the minimum wage increases Oct. 1.

Because the law signed earlier this year raised Michigan's minimum wage higher than the federal minimum wage, many employers who had been exempt from paying overtime must now begin paying those wages effective Oct. 1, 2006.

State Republicans had refused to hike the state minimum wage since 1996. But they agreed to it this year in order to stop a labor-sponsored petition drive that would have placed a higher minimum wage requirement in the state constitution.

Now, passage of that same law had the unintended consequence of expanding the pool of workers eligible for mandatory overtime - a "problem" which Republicans are attempting to fix.