On August 23rd a new overtime rule went into effect revising the standards around who is eligible, under the Fair Labor Standards Act, to receive overtime pay. The Labor Department's rule raises the overtime eligibility threshold from $8,060 to $23,660 annually. When the rule went into effect there was widespread speculation that the changes could result in as many as six million workers losing their overtime eligibility.

In passing their versions of the FY 2005 Labor-HHS spending bill, both the House and the Senate voted against the administration's wishes and included overtime amendments in their versions of the bill. Those amendments, sponsored by Rep. David Obey (D-WI) and Senator Tom Harkin (D-IA), would have reinstated old overtime eligibility rules, and were seen as a major victory for workers.

The Labor-HHS spending bill will most likely be passed in an omnibus by Congress this week during the lame-duck session. Unfortunately, the amendment designed to curb the Labor Department's ability to enfore their new overtime eligibility rules will be stripped from the omnibus appropriations bill. As a Senate GOP aide stated, "We're heading toward most policy pieces being taken out of the omnibus.... They're time consuming, and the president won't sign most of them."

While it can be considered a theoretical victory that both houses of Congress supported important overtime amendments, it is definitely a significant loss that the amendment will be ultimately stripped from the omnibus bill. When the appropriations process is reduced to passing most of the bills through an omnibus however, it is not surprising that important policy amendments are not receiving the time and deliberation that they deserve.

To read more about the consequences of changing overtime eligibility standards, click here.