labor

Overtime Regulations

The Department of Labor recently issued new rules governing how employers must compensate employees for hours worked in excess of 40 hours per week. The new rules dramatically increase the number of workers who must qualify for overtime, and therefore must have their hours tracked.

Businesses would not only have to allocate more for overtime pay as a result of the new rules, but, just as significantly, they would also face new compliance costs in tracking more workers’ hours and monitoring overtime. Workers may find their hours are reduced and earnings lowered as businesses shift resources in response to the new costs associated with these rules. Consumers may also see prices increase and quality decline.

Americans ought to reject the very premise of these intrusive regulations. Government shouldn’t set a one-size-fits-all system for compensating American workers. Rather, Americans should be free to negotiate arrangements that make the most sense for them and meet their needs and aspirations.

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