Question

1. How would you regulate minimum wages? Why?

2. The level of benefits offered to part-time workers is often below that offered to full-time workers doing the same job. A priority for labour standards legislation should be to end the discriminatory practice, especially since many part-time workers are women. Part-time workers would be better off if firms were forced to pay them the same benefits. True, false or uncertain. Explain.

3. The provision of health services requires the labour of doctors and nurses. If the wage rate of nurses increases, while doctor’s wages are unchanged, the demand for doctors will increase. True or false? Explain.

Answer 1

Answer 1;

The best way to do the regulation of minimum wage rate in the economy is through legislation. In the United States, the federal minimum wage is regulated by the Fair Labor Standard Act ( FSLA). It was first signed by Franklin D. Roosevelt in 1938. Apart from regulating the minimum wage rate, it also regulates overtime pay, youth employment standards and recordkeeping provisions for all private and public sector jobs in America.

The Federal minium wage law is enforced by the Wage and Hour Division ( WHD) of the Department of Labor. In case of diversion from the federal minimum wage rate, employer is brought into compliance and making sure that wronged employees are paid back any back wages. repeated failure results in fine and jail. Many states in the United States have their own minimum wage laws. Employers must pay their employees the higher of the two minimum wages, state or federal. In the United States alone, more than 130 million workers in the United States are covered by the FSLA.