[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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