FOR IMMEDIATE RELEASE
November 8, 1999
CONTACT: Lisette McSoud Mondello
SENATOR HUTCHISON BILL TO GIVE HOURLY WORKERS
ACCESS TO BONUS INCENTIVES
- Move Amends Antiquated 1938 Law -
WASHINGTON, D.C. -- Hourly workers around the country will have a greater chance to participate in employee bonus plans if a bill introduced today by Senator Kay Bailey Hutchison passes.
The Senator's legislation will change an antiquated federal law to allow employers to give incentive bonuses to hourly workers without having to undergo a lengthy and time-consuming recalculation of past overtime wages.
"Times have certainly changed since the 1938 law was enacted," said Senator Hutchison. "It's now about time for the law to catch up with the demands of the modern American workplace."
The 1938 Fair Labor Standards Act forced employers to recalculate the regular and overtime pay of employees who receive performance-based bonuses. It is a burdensome regulation especially for small business without the accounting or computer resources of larger companies. Senator Hutchison's legislation simply frees businesses from this recalculation when workers receive bonuses. Consequently, businesses may be more willing to establish bonus plans for hourly workers.
The "Bonus Incentive Act of 1999" has already attracted seven co-sponsors in the Senate. Congressman Cass Ballenger (NC) in the House of Representatives has introduced similar legislation, H.R. 1381.
#