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This week's lesson discussed the Fair Labor Standards Act (FLSA) and its mandates for such matters as minimum

wage, overtime, etc. The threshold under which salaried employees must be paid overtime was set in 1975 at $23,700 USD and was unchanged until May 2016 when President Barack Obama attempted to raise the threshold by executive order to $47,476 USD (the 1975 figure adjusted for 41 years of inflation). According to President Obama, the new salaried employee overtime rule would have provoked employers to do one of three things:

1) pay overtime wages to their salaried employees who make less than the new threshold,

2) give raises to salaried employees who are currently paid less than the threshold so that they remain ineligible for overtime, or

3) hire more employees to cover the overtime workload and constrain salaried employees paid less than the new threshold to a 40-hour work week.

In November 2016 this order was blocked by federal court injunction and has not been pursued under the Trump administration. However, consider and comment on the following questions:


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