Question

What effects do labour market regulations on safety standards have on workers, firms, and welfare?

Answer 1

In any welfare economy, labour market regulations for safety standards are not only made but strictly adhered to also. The United States of America is one such country wherein more than half a dozen labour market regulations are prominent and protect the workers and promotes welfare.

Following are the various labour market regulations on safety standards prevailing in the United States

1. The Occupational Safety and Health Act of 1970

The Occupational Safety and Health Act of 1970 was enacted by Congress in 1970. Its basic objective is to ensure that employers provide employees with an environment free from recognized hazards, such as
a. mechanical dangers,
b. exposure to toxic chemicals,
c. excessive noise levels,
d. heat or cold stress, or
e. unsanitary conditions.
Consequently, The above-mentioned Act created the Occupational Safety and Health Administration (OSHA) and the National Institute for Occupational Safety and Health (NIOSH) as regulatory organizations.

2. Health Coverage
The Affordable Care Act, passed in the year 2010 has made health insurance a right for workers at most of the medium- and large-sized businesses. The provision, “Employer Shared Responsibility Payment” stipulates that companies with 50 or more full-time workers (working at least 30 hours a week) must offer its employees a minimal level of health insurance – or else pay a substantial penalty.

3. The Civil Rights Act of 1964
The Civil Rights Act of 1964 is a landmark civil rights and labor law in the United States and its objective is to prohibit discrimination based on race, color, religion, sex, or national origin. Adding further forbids racial segregation in schools, employment, and public accommodations.

4. The Fair Labor Standards Act of 1938
The Fair Labor Standards Act of 1938 has created the right to a minimum wage(at least $7.25 per hour for forty hours a week) and "time-and-a-half" overtime pay when people work over forty hours a week. Adding further, It also forbids employment of minors in "oppressive child labor".

5. Social Security Act, 1935
The term Social Security includes federal Old-Age, Survivors, and Disability Insurance program and is regulated by the Social Security Administration. The original Social Security Act was enacted and signed into law by President Franklin D. Roosevelt in the year 1935, however it was recently amended to include several social welfare and social insurance programs.

In the year 2019, nearly 64 million people receive Social Security checks each month with an average amount of $1,461 per retirees and $1,234 per US citizens with disabilities.