Abstract
The author analyzes employment contract and labor demand models of the Fair Labor Standards Act overtime pay regulation to determine their effects on employers' labor costs. Using National Compensation Survey data to obtain a representative sample of U.S. private-industry jobs, he assesses each model's ability to predict either the adjustment of wage rates if overtime is warranted (the employment contract model) or the probability of using overtime to meet labor demands (the labor demand model). Using quasi-fixed employment costs as independent variables allows for a better accounting of labor demand. He finds that lower wages go hand-in-hand with jobs requiring more overtime work, which indicates that overtime pay regulation influences the structure of compensation.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
