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Fair Labor Standards Act (FLSA)—News


03/07/2005
Senate Set to Vote on Minimum Wage, Flex-Time

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The Senate is expected to vote soon on competing measures to boost the minimum wage, legislation that would allow employers to offer flex-time, and a change that would exempt more businesses from the Fair Labor Standards Act, the Associated Press reports.

The Senate is set to consider a number of measures that have been attached as amendments to legislation that would make changes to bankruptcy law.

Democrats, led by Senator Edward Kennedy of Massachusetts, are pushing a measure that would raise the minimum wage to $7.25 in three increments over 26 months.

Republicans, led by Senator Rick Santorum of Pennsylvania, are proposing to lift the minimum wage to $6.25 in two increments over 18 months.

Other aspects of Santorum's proposal are more controversial, the AP notes. Santorum wants to allow employers to use flex-time, which would change the threshold for determining if overtime wages must be paid from a 40-hour span over one workweek to an 80-hour span over two workweeks.

Under current federal law, employers must pay overtime wages to employees who work more than 40 hours in a workweek. Under Santorum's plan, employers would be required to pay overtime if employees exceed 80 hours worked over a two-week span. Therefore, employees would be able to work 50 hours in one workweek and 30 hours in the following workweek without the employer having to pay the overtime premium.

Supporter's of flex-time, including President Bush, say it would make it easier for workers to balance work and family responsibilities. Opponents say it would mean an end to the 40-hour workweek, the AP reports.

Santorum also wants to boost the threshold for the small-business exemption from the Fair Labor Standards Act, from $500,000 to $1 million, the news service notes.

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