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ISSUE 2
Will Meeting Exem Standards Exceed Burden of Overtim
Debating who benefits, and who suffers, from policies across the spectrum of economic and social issues is a longstanding pastime in the United States.
Author: Michael Baer
Detailed analysis in these proposals count millions who would benefit and generally estimate costs, including costs to employers and the impact on the economy. However, the minimum wage debate is not nearly as abstract as the one that surrounds determining which employees can be exempted from overtime pay for working more than 40 hours in a work week. Administration of the Overtime Pay Exemption Federal regulations under the Fair Labor Standards Act allow employers to avoid paying overtime to several categories of workers who meet specific duties tests, who are paid on a salaried basis with generally
When proposals for increasing the minimum wage surface, for example, it generally is understood that the low- paid workers benefit at the expense of employers forced to pay a higher hourly rate. Those against raising the rates also point to higher employment costs being passed on to consumers as a result, and that smaller employers with lower margins of profit will go out of business. Proponents counter that the spending power of a large segment of the population will improve, and some argue mandated wage increases help keep individuals off government- funded programs such as food stamps or other subsidies.
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