Focus

Some recent changes at the U.S. Department of Labor (DOL) most likely will affect you in some way: In an effort to fulfill a promise to President Bush, DOL has formed its Office of Disability Employment Policy and begun to change the way it regards overtime compensation.

The disabled

The Office of Disability Employment Policy's main mission is to seek employment for disabled individuals (and get them off the list of those receiving Social Security Disability Insurance) by educating businesses and offering tax incentives to those that hire disabled workers.

According to Inc. magazine, since 1984, the number of people collecting federal disability benefits has risen 60 percent to 5.6 million. Many of the 5.6 million no longer are looking for work and receive an average of $722 per month from the government. This could mean your payroll taxes will increase.

Massachusetts Institute of Technology economist David Autor and University of Chicago economist Mark Duggan told Inc. they think payroll taxes could increase to 15 percent from the current 12.4 percent during the next 10 years because about one in 20 people of working age will receive disability insurance benefits—up from the current rate of one in 27.

Most of those claiming disability are capitalizing on changes in eligibility requirements that allow low-mortality ailments, such as back pain and mental illness, to be classified as disabilities. As a result, more people in their 40s are collecting disability insurance, which means they'll receive payments for longer time periods. The Social Security Administration expects to pay about $71 billion in disability benefits this year.

Overtime

In a move hailed by Republicans, Congress is expected to pass a bill that will allow private companies to offer hourly employees paid leave rather than overtime pay—an option that has been legal for public companies since 1985. If the bill passes, an employee would be given the option of signing an agreement stating he agrees to trade time for pay with an annual cap of 160 hours.

Democrats and unions believe the bill would threaten the standard 40-hour workweek.

As things progress, Professional Roofing will keep you updated. You can logon to DOL's Web site, www.dol.gov, for more information.

Ambika Puniani is editor of Professional Roofing magazine and NRCA's director of communications.