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June 9, 1998
(House Rules)

H.R. 2888 - Sales Incentive Compensation Act
(Fawell (R) IL and 52 others)

The Administration opposes H.R. 2888, because it would deny an estimated 1.5 million sales employees overtime pay when they work extra hours. The low salary guarantee provided in the bill is not fair compensation for the loss of overtime pay. In addition, the multi-test exemption in the bill as reported is overly complex. It would be extremely difficult and burdensome for employers, affected employees, and the Department of Labor to implement, and could lead to needless and costly litigation. The bill would benefit employers at the expense of employees' existing overtime protections and would remove a basic Fair Labor Standards Act principle -- to limit excessive hours of work by employees and provide them just compensation for working overtime.