January 3, 2012

M12-002

To: SPEEA Council Members

From: SPEEA Legislative and Public Affairs Committee

Subject: PRE-SUBMITTED NEW BUSINESS: Opposition to the Computer Professionals Update Act and Related Legislation

Background

The Computer Professionals Update Act (CPU Act), S 1747, was introduced in the U.S. Senate by Senator Kay Hagan (D-NC) in October. The Fair Labor Standards Act (FLSA) currently exempts a specific field of computer and IT workers who earn $27.63 or more an hour from receiving guaranteed overtime compensation when working over 40 hours a week. The CPU Act would broaden that provision to exempt almost all computer and IT related workers who earn $27.63 or more an hour or are paid on a salary basis.

Those targeted by the CPU Act are loosely defined as “any employee working in a computer or information technology occupation (including, but not limited to, work related to computers, information systems, components, networks, software, hardware, databases, security, internet, intranet, or websites) as an analyst, programmer, engineer, designer, developer, administrator, or other similarly skilled worker” that focuses on computer and IT functions that range from systems and applications to database analysis.

Additional Information

The tech industry supports this measure and argues it will allow them to hire more domestic workers. The Department of Professional Employees, AFL-CIO opposes this measure as it will cut the pay of U.S. workers during difficult economic times.

Impact to SPEEA

SPEEA represents nearly 10,000 technical aerospace workers currently protected by the FLSA overtime provisions. If enacted, their non-exempt status could be vulnerable.

SPEEA L&PA Committee Recommendation

The SPEEA Legislative and Public Affairs Committee recommends’ passage of this motion.

MOTION

It is moved that: The SPEEA Council oppose S 1747, the Computer Professionals Update Act, and related legislation meant to further restrict overtime protections from technical worker classifications. Furthermore, the Council permits SPEEA staff to advocate against said measures.

Pro’s

• SPEEA members could be directly impacted by the CPU Act and see a reduction in wages. Other members could be vulnerable based on employer efforts to revise job classifications and functions.
• Reducing pay for highly skilled U.S. professions will make it harder to attract promising students and retain the best possible talent in these fields.

Con’s

• Reducing U.S. labor costs could increase overall employment.
• Reducing U.S. labor costs could decrease so-called dependence on foreign workers.