Question

In spring 2014, then-President Obama sent a memo to the US Department of Labor (DOL) Secretary directing reform of FLSA to address white-collar exemptions and, effectively, increase the number of employees entitled to overtime pay. Some changes have been approved and became effective as of December 2016. Research some of the revisions the DOL adopted such as an increase in minimum salary requirements and changes to the current “primary duty” test.

-Analyze some of the controversies and objections associated with these modifications.

-Explain and justify your view--do these changes benefit employees or the employer?

-Do you prefer the previous FLSA law or the changes?

Answer 1

There can be some controversial issues regarding the new FLSA law. There are many employees who are not willing to work overtime. But since the new law stated that the number of employees working over time should be increased, many unwilling employees can left the job or can be removed by the employer from the company also.

Here , the employer will be benefitted. Because they can get the production from the same labour with the same wage cost . Suppose a labour works for 9 hours. Let the person works another 3 hours over time and get the overtime pay per hour. So if the employer wanted to hire new employee then he has to hire on the basis of full time and has to pay on the basis of full time , not in respect of per hour . So here the ultimate profit goes in favour of the employers.

I will prefer the previous FLSA law. Since we should see the benefits of the employees first, here though the employees get overtime pay but at the same time employment also get reduced . Here employers are well benefitted .