Overtime Pay

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Discussion
Similar problems to the case presented on South Texas College have tasked policy analyst to question the legitimacy of government intervention on the issue of overtime compensation. Similarly, the perceived market failure surrounding the topic policy analyst have been entrusted to use their technical skills to “predict and access” the consequences of alternative policies related to this issue. The following sections within this document discuss how policy analyst have shaped the formulation of this policy and its effect on public stakeholders.
Social Setting Leading to Overtime Pay The issue of overtime pay in our current social setting results from the same public ideology of wage theft that was part of the great depression era. Although the economic and social setting of the U.S. is arguably in far better condition …show more content…

Author Greg IP, describes real pay as the amount an individual makes in monetary terms after accounting for inflation. The logic behind this theory is that “the more a worker produces for his employer, the more he’ll earn” (Ip, 2013, p. 58). Greg Ip, provides an example of this theory and its dilemma in his book titled The Little Book of Economics: How the Economy Works in the Real World. Greg Ip, states that “someone with a backhoe can dig more than someone with a shovel”, therefore it may be expected that the employee who produces more is compensated respectively (Ip, 2013, p. 58). However, the employment world does not always guarantee that the highly productive employee will benefit more than the employee with less productivity and often it is the “employer” who gains the capital profitability in this employment agreement and other times it is even the consumer of the product or

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