WASHINGTON, Aug 23 (AFP) - New rules governing overtime pay kicked in Monday, sparking a politically charged debate over the impact of the new regulations on US workers.
Democratic presidential nominee John Kerry blasted the new rules as leading to a likely "pay cut" for some six million wage-earners.
"This is only the latest insult to Americas middle class who are paying a higher tax burden, while at the same time wages are declining and families are paying skyrocketing costs for health care, energy and college tuition," Kerry said in a statement.
Kerry's presidential campaign released a report that estimated the new rules could cause a police lieutenant to see his paycheck decrease by 10,000 dollars, while a computer programmer could lose 9,000 dollars a year.
The campaign of President George W. Bush issued its own fact sheet, contending that the changes would mean more money in the pockets of some workers, including an additional 15,600 dollars a year for a restaurant manager working 50 hours a week, or an additional 18,000 dollars for a department store manager.
Republicans say Democrats are using the new rules to scare voters. At issue are new Labor Department rules finalized in April that govern eligibility for overtime pay.
The Bush administration and business groups say the new rules are a needed update to outmoded and often confusing regulations that have not been changed in decades, and eliminate a costly source of litigation.
A number of companies, including retail giant Wal-Mart, have faced lawsuits alleging illegal denial of overtime pay.
The Bush administration says the new rules deny overtime pay only to a few hundred thousand Americans, many already earning six-figure incomes, while 1.3 million more white-collar workers, currently under salary, will be able to claim overtime pay.
"Under the new rules, workers will know their overtime rights, employers will know their responsibilities and the department can more vigorously enforce these protections," Labor Secretary Elaine Chao said.
But Democrats say the action is part of a "middle class squeeze" that has seen working families struggle to make ends meet as wealthier Americans benefit from tax cuts tilted toward the top of the income scale.
"Today, millions of workers will find out that instead of getting time and a half; they're going to get a hard time from their government," vice presidential candidate John Edwards said.
The regulations include overtime pay guarantees for all workers earning 23,660 dollars annually or less. But the new rules also exempt from overtime pay all employees earning 100,000 dollars or more, if they meet certain tests.
A report by the Economic Policy Institute, a liberal think tank, estimated that nearly two million workers who are "team leaders" will be ineligible for overtime pay under the new rules, along with about 920,000 workers without college degrees who will be reclassified as "learned professionals."