News Release

OPA News Release: [04/27/2004]
Contact Name: Pamela Groover
Phone Number: (202) 693-4676

U.S. Secretary of Labor Elaine L. Chao Announces New Enforcement Task Force

NEW ORLEANS, La.—U.S. Secretary of Labor Elaine L. Chao today named a new enforcement task force within the Wage and Hour division of the Department of Labor to maximize protection of workers’ pay rights under new Overtime Security rules announced last week. The announcement followed a meeting Secretary Chao held with Department of Labor Wage and Hour regional managers and district directors.

“This Administration is setting new enforcement records in helping workers recover back pay and overtime pay,” said Secretary of Labor Elaine L. Chao. “Both the new Overtime Security rule and this taskforce reinforce our proven commitment to protecting workers’ rights. The other reason for creating this enforcement task force is our concern that the massive misinformation campaign against the new Overtime Security rules could undermine efforts to make employers live up to their new obligations under the rule and jeopardize workers’ overtime pay protections,” said Chao.

The new rules expand the number of workers eligible for overtime by nearly tripling the salary threshold. Under the 50-year-old regulations, only workers earning less than $8,060 annually were guaranteed overtime. Under the new rules, workers earning $23,660 or less are guaranteed overtime. This strengthens overtime protection for 6.7 million low-wage salaried workers, including 1.3 million salaried white collar workers who were not entitled to overtime pay under the existing regulations. These workers will gain up to $375 million in additional earnings every year.

“With the new rules in place, workers will clearly know their rights and employers their responsibilities and our Wage and Hour enforcement teams now have strong new standards in place to better protect workers’ pay,” said Chao.

The Department’s new FairPay rule will take effect in 120 days. It was published in the Federal Register on Friday, April 23, 2004 and a text version is available online at www.dol.gov/fairpay. For further information about the Fair Labor Standards Act, visit the Department’s Wage and Hour Division web page at www.dol.gov.

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