April 7, 2016

Working Overtime to Avoid the Truth

Donald J. Boudreaux

Senior Fellow, F. A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics

Liya Palagashvili

Senior Research Fellow

Many salaried workers in the U.S. may soon be obliged to punch a time clock, thanks to the Labor Department’s proposed regulation raising the income level for workers to qualify for overtime. More overtime pay sounds great. But what Labor fails to mention—and its economists surely understand—is instead of paying more workers overtime, many companies will simply cut back their hours or lower their salaries. That’s not a story Labor is comfortable telling. So it doesn’t.

Continue reading at The Wall Street Journal.