Committee on Education and the Workforce

FOR IMMEDIATE RELEASE
June 23, 1999
Contact: Becky Campoverde
or Dan Lara
(202) 225-4527

Ergonomics, Compensation Bills Clear
House Education Committee

WASHINGTON The House Education and the Workforce Committee passed two bills today, one relating to the Occupational Health and Safety Administration (OSHA) and the other relating to the Fair Labor Standards Act (FLSA). H.R. 987, The Workplace Preservation Act, sponsored by Rep. Roy Blunt (R-MO) passed by a 23-18 vote. H.R. 1381, The Rewarding Performance in Compensation Act, sponsored by Rep. Cass Ballenger (R-NC) passed 26-22.

"H.R. 987 is a very simple bill, and if we went out and explained this legislation to most people, they would wonder what the debate is about" said House Education and the Workforce Committee Chairman William Goodling (R-PA). "It directs that OSHA not promulgate a proposed or final standard on ergonomics until the National Academy of Sciences has completed a study, which is already underway. The study was directed by Congress and signed into law by President Clinton last year. The Academy must report the results to Congress."

Goodling said an ergonomics regulation would be a substantial mandated cost on American companies and the economy. OSHA estimates the regulation would cost $3.5 billion per year.

Ballenger’s bill, H.R. 1381, would amend FLSA to allow employers to pay employees bonuses and other performance-related compensation without having to calculate those payments into the workers’ regular rate of pay and overtime premium.

"This bill will help workers to be able to share financially when their efforts produce gains in productivity or sales, fewer injuries, or other important aspects of performance," Ballenger said. "FLSA does not prohibit that now, but it does make it difficult and confusing for employers who wish to do so. The Workforce Protections Subcommittee has heard from companies large and small that told us that the current provisions are a principal deterrent to providing or expanding gainsharing programs for workers."

In addition, H.R. 1381 offers additional protections to help ensure that employees are made aware of their companies specific gainsharing plans. The protections include putting the plan in writing, basing the plan on a stated formula, and making sure the employee maintains the plan in good faith for the purpose of giving remuneration over and above the employees’ regular wages and salaries, Ballenger said.

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