Overtime Reform: Widening the Lens

Perspectives on Work, LERA, Forthcoming

6 Pages Posted: 14 Aug 2013

See all articles by Lonnie Golden

Lonnie Golden

Pennsylvania State University - Abington College; Economic Policy Institute; Project for Middle Class Renewal

Date Written: Winter 2005

Abstract

The standard to apply to any proposal to reform the FLSA overtime law is the extent to which it remains true to the original intent of the FLSA. That is, does it sufficiently: 1) deter employer demand for excessive work hours; 2) reward extended work effort; and 3) encourage the spreading of job opportunities? Recent US Congressional attempts, such as H.R. 1406, the Working Families Flexibility Act of 2013, to allow private sector employers to replace overtime pay with comp time in lieu for non-exempt (most hourly paid) workers, if the employee signs an agreement, is more likely to be harmful than helpful to worker well-being. The proposed bill does not preclude employer denial of use of comp-time credits when the worker prefers, nor prevent forced use of comp time credits by employers when the worker does not prefer to use them. The Comp-time proposal omits precisely those which surveys show would most value compensatory time -- white collar employees, such as quasi-professional and managerial jobs -- currently exempt from premium compensation altogether. Fresher ideas are needed in order to create a comprehensive reform of the FLSA that would deliver greater worker well-being in an era of stagnant wages. A broader, truly modernized, FLSA reform would aim to keep overtime work safe, legal and rare. Thus it would include accrued leave and sick time off, rights to request a shorter workweek or work-year and rights to refuse unwelcome overtime work.

Keywords: overtime, comp time, FLSA, hours of work

JEL Classification: J22, J32, J33

Suggested Citation

Golden, Lonnie, Overtime Reform: Widening the Lens (Winter 2005). Perspectives on Work, LERA, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2264896

Lonnie Golden (Contact Author)

Pennsylvania State University - Abington College ( email )

1600 Woodland Rd.
Abington, PA 19001
United States
215-881-7596 (Phone)
215-881-7333 (Fax)

Economic Policy Institute ( email )

1660 L Street NW, Suite 1200
Washington, DC 20036
United States

Project for Middle Class Renewal ( email )

1408 W. Gregory Dr.
Urbana, IL 61801
United States

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