Adjusting Overtime Salary Threshold Would Ensure 'A Fair Day?s Pay for a Fair Day?s Work'

"A fair day's pay for a fair day's work." This is the premise on which the Federal Labor Standards (FLSA) Act was enacted 75 years ago. By 1938, the Great Depression had brought about high unemployment and had left workers with little leverage to negotiate over working conditions or hours, setting the stage for employers to squeeze labor by requiring long work hours without additional compensation. To prevent this unfair practice from continuing, the FLSA's overtime provisions require employers to pay all hourly and many salaried employees overtime pay (time and a half) when they work more than 40 hours a week. Salaried employees making below a certain salary threshold automatically qualify for overtime pay, and those making more than the threshold qualify unless they are exempt (i.e., they are "employed in a bona fide executive, administrative, or professional capacity"). However, the law does not set the salary threshold to adjust automatically based on inflation, and thus, from time to time, the threshold has been updated to reflect economic growth.