Labor Relations Commons^™

Panel: Overtime Compensation An Pay Equity In Higher Education (Cle), Mark Smith

Journal of Collective Bargaining in the Academy

No abstract provided.

Panel: Overtime Compensation An Pay Equity In Higher Education (Cle), John Ho

Journal of Collective Bargaining in the Academy

The FLSA provides certain protections for individuals who are classified as employees. Employees are considered “non-exempt,” i.e., eligible for all of those protections (minimum wage and overtime) unless they fall within specific exemptions. The burden of proof is on the employer to establish that employees fall within an exemption.

Colleges and universities often struggle with unique challenges in determining whether certain jobs are exempt. The exemptions below only focus on the requirements under the FLSA. There are often different and more restrictive requirements under state law that must be considered as well.

Compensating Wage Differentials For Mandatory Overtime, Ronald G. Ehrenberg, Paul L. Schumann

Ronald G. Ehrenberg

Our paper estimates the extent to which employees are compensated for an unfavorable job characteristic, being required to accept mandatory assignment of overtime, by receiving higher straight—time wages. Our estimating equations are derived from a model in which wage rates and the existence of mandatory assignment of overtime are jointly determined in the market by the interaction of employee and employer preferences. While on average, we do not observe the existence of a compensating wage differential for mandatory overtime, we do observe the existence of such differentials for unionized workers and workers with only a few years experience at a …

Absenteeism And The Overtime Decision, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] Upon reading the congressional hearing on the Overtime Pay Penalty Act of 1964, one cannot fail to be impressed by the emphasis that management places on absenteeism as a primary cause of overtime. The argument given is basically quite simple: Large firms, it is claimed, attempt to account for absenteeism by hiring standby workers; however because of the stochastic nature of the absentee rate, it is impossible for them to have replacements always available. Hence overtime must be worked by existing employees in order to meet production schedules. One concludes from this argument that the randomness of absenteeism is …

The Impact Of The Overtime Premium On Employment And Hours In U.S. Industry, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] This paper presents empirical estimates of the intra-industry cross-section relationship between annual overtime hours per man and the ratio of these quasi-fixed costs to the overtime wage rate. Estimates are also made of the impact of a change in the overtime premium on employment and hours; these estimates have implications for policymakers concerned with the wisdom of increasing the overtime premium as a method of job creation.