Paul L. Schumann

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NBER Working Papers and Publications

December 1981Compliance with the Overtime Pay Provisions of the Fair Labor Standards Act
with Ronald G. Ehrenberg: w0815
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 overt...

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. citation courtesy of

November 1981Compensating Wage Differentials for Mandatory Overtime
with Ronald G. Ehrenberg: w0805
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 firm. Given any estimated compensating wage differential for an unfavorable working condition, one must decide whether its magnitude is suffici...

Published: Ehrenberg, Ronald G. and Paul L. Schumann. "Compensating Wage Differentials for Mandatory Overtime." Economic Inquiry, Vol. 22, No. 4, (0ctober 1984), pp. 460-478. citation courtesy of

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