Unformatted text preview: lar would add about two cents to
the cost of a fast food hamburger.
In 1938, at the height of the Great Depression, Congress passed legislation to prevent employers from exploiting the nation’s most
vulnerable workers. The Fair Labor Standards Act established the first federal minimum wage. It also imposed limitations on child labor. And
it mandated that employees who work more than forty hours a week be paid overtime wages for each additional hour. The overtime wage
was set at a minimum of one and a half times the regular wage.
Today few employees in the fast food industry qualify for overtime — and even fewer are paid it. Roughly 90 percent of the nation’s fast
food workers are paid an hourly wage, provided no benefits, and scheduled to work only as needed. Crew members are employed “at will.”
If the restaurant’s busy, they’re kept longer than usual. If business is slow, they’re sent home early. Managers try to make sure that each
worker is employed less than forty hours a week, thereby avoiding any overtime payments. A typical McDonald’s or Burger King...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08