NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Compliance with the Overtime Pay Provisions of the Fair Labor Standards Act

Ronald G. Ehrenberg, Paul L. Schumann

NBER Working Paper No. 815 (Also Reprint No. r0326)
Issued in December 1981
NBER Program(s):   LS

Our paper presents a methodology that can be used to estimate the extent of noncompliance with the overtime pay provisions of the Fair Labor Standards Act (FLSA). The methodology is applied to data from the May 1978 Current Population Survey and the 1977 Michigan Quality of Employment Survey. These data suggest that the fraction of covered workers working overtime who fail to receive a premium of at least time and a half, as called for by the legislation, is in the range of 25 percent. They also suggest that the extent of noncompliance is greater in those industries in which size class exemptions to the legislation exist (retail trade and selected service industries). Finally, probit analyses of the determinants of noncompliance suggest that decisions about whether to comply with the overtime provisions of the FLSA are at least partially based on the associated benefits and costs.

download in pdf format
   (369 K)

download in djvu format
   (287 K)

email paper

This paper is available as PDF (369 K) or DjVu (287 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w0815

Published: Ehrenberg, Ronald G. and Schumann, Paul L. Compliance with the Overtime Pay Provisions of the Fair Labor Standards Act." Journal of Law and Economics, Vol. 25, No. l (April 1982) pp. 159-181.

Users who downloaded this paper also downloaded these:
Costa w6855 Hours of Work and the Fair Labor Standards Act: A Study of Retail and Wholesale Trade, 1938-1950
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us