[Congressional Record Volume 144, Number 74 (Wednesday, June 10, 1998)]
[House]
[Pages H4465-H4466]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PROVIDING FOR CONSIDERATION OF H.R. 2888, SALES INCENTIVE COMPENSATION 
                                  ACT

  Mr. HASTINGS of Washington. Mr. Speaker, by direction of the 
Committee on Rules, I call up House Resolution 461 and ask for its 
immediate consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 461

       Resolved, That at any time after the adoption of this 
     resolution the Speaker may, pursuant to clause 1(b) of rule 
     XXIII, declare the House resolved into the Committee of the 
     Whole House on the state of the Union for consideration of 
     the bill (H.R. 2888) to amend the Fair Labor Standards Act of 
     1938 to exempt from the minimum wage recordkeeping and 
     overtime compensation requirements certain specialized 
     employees. The first reading of the bill shall be dispensed 
     with. General debate shall be confined to the bill and shall 
     not exceed one hour equally divided and controlled by the 
     chairman and ranking minority member of the Committee on 
     Education and the Workforce. After general debate the bill 
     shall be considered for amendment under the five-minute rule. 
     It shall be in order to consider as an original bill for the 
     purpose of amendment under the five-minute rule the amendment 
     in the nature of a substitute recommended by the Committee on 
     Education and the Workforce now printed in the bill. The 
     committee amendment in the nature of a substitute shall be 
     considered as read. During consideration of the bill for 
     amendment, the Chairman of the Committee of the Whole may 
     accord priority in recognition on the basis of whether the 
     Member offering an amendment has caused it to be printed in 
     the portion of the Congressional Record designated for that 
     purpose in clause 6 of rule XXIII. Amendments so printed 
     shall be considered as read. The Chairman of the Committee of 
     the Whole may: (1) postpone until a time during further 
     consideration in the Committee of the Whole a request for a 
     recorded vote on any amendment; and (2) reduce to five 
     minutes the minimum time for electronic voting on any 
     postponed question that follows another electronic vote 
     without intervening business, provided that the minimum time 
     for electronic voting on the first in any series of questions 
     shall be 15 minutes. At the conclusion of consideration of 
     the bill for amendment the Committee shall rise and report 
     the bill to the House with such amendments as may have been 
     adopted. Any Member may demand a separate vote in the House 
     on any amendment adopted in the Committee of the Whole to the 
     bill or to the committee amendment in the nature of a 
     substitute. The previous question shall be considered as 
     ordered on the bill and amendments thereto to final passage 
     without intervening motion except one motion to recommit with 
     or without instructions.

  The SPEAKER pro tempore. The gentleman from Washington (Mr. Hastings) 
is recognized for 1 hour.
  Mr. HASTINGS of Washington. Mr. Speaker, for the purpose of debate 
only, I yield the customary 30 minutes to the gentleman from 
Massachusetts (Mr. Moakley), pending which I yield myself such time as 
I may consume. During consideration of this resolution, all time 
yielded is for the purpose of debate only.
  (Mr. HASTINGS of Washington asked and was given permission to revise 
and extend his remarks.)
  Mr. HASTINGS of Washington. Mr. Speaker, House Resolution 411 is an 
open rule providing one hour of general debate to be equally divided 
between the chairman and ranking minority member of the Committee on 
Education and the Workforce.
  The rule makes in order the Committee on Education and the Workforce 
amendment in the nature of a substitute as an original bill for the 
purpose of amendment which shall be considered as read. The rule allows 
the Chairman of the Committee of the Whole to postpone votes during 
consideration of the bill and to reduce voting time to 5 minutes on a 
postponed question, if the vote follows a 15-minute vote.
  Mr. Speaker, the rule authorizes the Chair to accord priority in 
recognition to Members who have preprinted their amendments in the 
Congressional Record.
  Finally, the rule provides one motion to recommit with or without 
instructions.

                              {time}  2245

  Mr. Speaker, H.R. 2888 would amend the overtime and minimum wage 
provisions of the Fair Labor Standards Act as they apply to certain 
private sector employees.

[[Page H4466]]

  Presently so-called inside sales employees, that is, those who sell 
from inside an employer's premises using telephones, faxes and 
computers, are subject to the overtime requirements of the Fair Labor 
Standards Act while outside sales employees are exempt. As nonexempt, 
inside sales employees often suffer from reduced earning opportunities 
because they are limited to a 40-hour workweek. Outside employees, on 
the other hand, can choose for themselves whether to work additional 
hours and thus receive incentive pay for additional sales made. This 
distinction, written into law in 1938, no longer makes sense in 1998. 
While inside sales employees are often as skilled and productive as 
outside sales employees, they are discriminated against under this act.
  Mr. Speaker, in order to minimize the potential for abuse, the 
exemption authorized under H.R. 2888 is narrowly drawn to cover only 
inside sales employees who meet a number of specific criteria. For 
example, such individuals must receive specialized training and develop 
technical knowledge. They must sell predominantly to regular customers 
and must receive incentive compensation based on their own selling 
efforts.
  Finally, Mr. Speaker, I am pleased that CBO reports the bill would 
have no significant impact on the budget and contains no unfunded 
mandates on local governments or private employers. I commend the 
gentleman from Illinois (Mr. Fawell) and the gentleman from New Jersey 
(Mr. Andrews) for their efforts to correct this clear inequity in the 
law and urge my colleagues to support H.R. 2888.
  Recognizing that certain Members have expressed reservations about 
this legislation, the Committee on Rules has reported an open rule in 
order to provide Members wishing to perfect this bill the freedom to 
offer their amendments on the floor. Accordingly, I urge my colleagues 
to support not only the rule but H.R. 2888, the Sales Incentive 
Compensation Act.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MOAKLEY. Mr. Speaker, I thank the gentleman from Washington (Mr. 
Hastings) for yielding me the customary half-hour, and I yield myself 
such time as I may consume.
  Mr. Speaker, I am not opposed to this open rule, but I am very 
concerned about the bill that it makes in order. This bill says that 
employers can require people to work overtime but they no longer have 
to pay them time and a half. In other words, sales employees who are 
forced to work long hours could end up with no additional pay at all.
  Mr. Speaker, this means that enormous numbers of already low-paid 
workers would be denied the protections of the Fair Labor Standards 
Act. My Republican colleagues may argue that the low salary guarantees 
in this bill takes care of the workers, but, Mr. Speaker, it does not.
  According to the Bureau of Labor Statistics, this bill will deny 1.5 
million sales employees overtime pay. I for one think that 1.5 million 
American workers should be paid for the time that they spend at work.
  Like many other bills my Republican colleagues have drafted, this 
bill helps employers at the expense of workers. It is a win-win 
situation, Mr. Speaker, for the employers and it is a gamble for the 
workers. If the worker makes big sales, the employer does well. If the 
worker does not make big sales, the employer still does well because he 
does not have to pay his worker overtime. Employees who must work long 
hours but do not make significant sales will be working virtually for 
nothing.
  Anyone with any complaints, anyone who is confused about exactly who 
is covered under this very complicated, multi-test exemption, please do 
not look to this bill for clarification.
  These confusing standards will create a lot of misunderstandings, a 
lot of fights, a lot of litigation. Just what we need, Mr. Speaker, 
more litigation.
  My Republican colleagues may argue that the people are begging for 
overtime in order to make bigger commissions. Mr. Speaker, if that is 
the case, if so many workers want to work overtime for commission 
instead of time and a half, then they should be allowed to do so. But 
as I understand it, the amendment to make this provision voluntary was 
rejected. So whether you want to work overtime for little pay or you 
want to go home and see your family, you are really stuck working at 
the whim of an employer who has little to lose by chaining you in the 
office. This bill will force people to work longer hours, it will cut 
employees' incomes, it will promote lawsuits, and it will mean workers 
are hurt, not helped, by advances in technology.
  What we really need, Mr. Speaker, if you really want to help the 
American worker, is to raise the minimum wage. Let us allow American 
workers to earn a living wage. Let us enable hard-working full-time 
employees the chance to take care of their families. I have no 
opposition to the rule, but I do oppose the bill.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. HASTINGS of Washington. Mr. Speaker, I yield back the balance of 
my time, and I move the previous question on the resolution.
  The previous question was ordered.
  The resolution was agreed to.
  A motion to reconsider was laid on the table.

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