Salaried Overtime Threshold Revisited
Fair Labor Standards Act (FLSA) is a fundamental federal law that establishes overtime pay eligibility, minimum wages, child labor standards and recordkeeping that affects both part-time and full-time workers in various working areas. However, according to the option that was provided by the Obama’s executive concerning the federal law, they intend to provoke hiring more employees to cover the overtime workload and constrain salaried employees paid less than the new threshold to a 40-hour workweek. Hiring more workers reduces workforce credibility about what is expected of them. hiring more employees to cover the constrain workers and the overtime workload not only an economic challenge also reduces the amount of time that such workers may need to rest after a certain period. In most cases, if the amount of time is adequately addressed, the threshold in the working area is properly upheld and both the salaried and the overtime workers are properly served. Notably, there are options for the rationale. For instance, for coherent accommodation of all workers, both the exempt salaried workers and the salaried workers who meet certain standards outline the supervisors can be releases from such the overtime pay rule to boost others instead of hiring more. However, limiting certain age groups not to be part of the practice and option is the common legal problem realized in the process.
According to Khan (2017), provoking hiring more employees to cover the overtime workload and constrain salaried employees paid is a benefit to the macro-level economy because the amount of cash that will be earned in overtime is always high. Similarly, in most cases, overtime cash and products are also congruent and the production process is not limited and depends on the ability of the worker and the amount needed.
Khan, M. (2017). Does Increasing the Overtime Eligibility Threshold Increase Income Inequality? (Doctoral dissertation, Georgetown University).