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The U.S. has a strong free enterprise foundation and its laws reflect this. Freedom of contract remains the rule even though it is much criticized in some circl
by grellas 15y ago
The U.S. has a strong free enterprise foundation and its laws reflect this. Freedom of contract remains the rule even though it is much criticized in some circles and has been hedged considerably over the years. In employment, the old rule was that you could pretty much fire anyone at will for any reason and, if you did, you incurred no legal consequence. This is pure freedom of contract. In time, this unrestricted freedom came to be deemed repugnant where it bumped into important social policies - for example, that employers not discriminate on the basis of race. Hence, protective laws were passed and these circumscribed the old unrestricted freedom to have pure at-will employment relationships that gave an employer an open ticket to fire people for any reason whatever, even a repugnant one. That said, however, when you get down to the day-to-day employment relationships that most of us encounter, the at-will rules still prevail and, with limited exceptions, it really does remain the case that most people can be fired for any reason at any time and almost always without legal consequence. This may be seen as good or bad but it is the way of life under U.S. law with its strong bent toward free enterprise and freedom of contract.
The same pertains to overtime rules for employees. The U.S. does have a body of protective laws that require employers to pay overtime for excess hours worked, either by the day or by the week. But the historic relationship between employer and employee had a strong bias toward freedom of contract - that is, if an employer and an employee agreed to a certain working relationship, that was their prerogative and the government had no say in the matter. Again, this older form of unrestricted freedom led to consequences deemed repugnant as a matter of social policy (e.g., sweatshops). Thus, laws were enacted to abridge the older unrestricted freedom of contract (wage and hour laws, in the example considered here). But, as in the case of at-will rules, these laws did not disturb the large measure of freedom of contract that formerly prevailed except for the specific situations where a policy judgment was made that the workers were most vulnerable and in need of protection. Thus, U.S. overtime rules apply without question to low-skilled jobs and to low-paying jobs and to jobs where the employees have little or no independence or control over how they perform their duties. But these protective rules can and do peacefully co-exist with an equally important set of rules providing that high-skilled employees, skilled professionals, employees with substantial administrative responsibilities with managerial functions, and like positions are expressly exempted from the overtime rules. The idea is that, in a free economy, as a matter of policy, it is better for parties to retain freedom in defining the work requirements of a position than for the government to dictate protective rules where the parties are not deemed in need of protection. In other words, the employer-employee relationships for such exempt categories are deemed to be healthier if the parties are free to negotiate salary/bonuses or other compensation that is not tied to rigid rules about overtime. The laws let the parties have much more flexibility in deciding how to frame their relationships, and this basically reflects the old-style freedom of contract that has always characterized the U.S. economy. Protections were adopted as deemed necessary but they are limited as a matter of public policy. This can be seen as good or bad but it is the law in the U.S.
What does this mean in practice? It means, for example, that a computer professional can be paid a salary of $100K/yr and be asked to work like a slave, all without overtime compensation. But that same professional, if paid $30K/yr, is required to be paid overtime for excess hours worked, even if that person is on salary. One case is treated as appropriate for free choice by the parties without overriding restrictions; the other is not. And the difference, in this case, turns on the amount of salary paid - the highly-paid worker is treated as being able to protect his own interests while the relatively low-paid worker is not.
Europe clearly has taken a different approach and this too can be seen as good or bad depending on one's perspective. In general, in Europe, the idea of open-ended freedom of contract is suppressed in favor of more sweeping protective laws favoring employees. Whether this leads to a robust economy or chokes enterprise is open to debate but it clearly differs from the U.S. approach.
In this piece, the author criticizes the U.S. employment pattern as, in effect, requiring exempt computer professionals to work for free when they are required to work excessive hours tied to a fixed salary. In making this point, the author admits that his European biases are showing. The "U.S. view," if I can call it that, is not that the worker is being made to work for free but rather that the worker has not agreed to be paid by any hourly measure but rather for an overall performance to be rendered, no matter how many hours it takes. This might be regarded as "slavery," but (taking, for example, the exemption for executives) does anyone really believe that top executives have as their focus the exact number of hours worked as opposed to broader goals related to their job performance. The same can be said of professionals, as many computer professionals look primarily to the task and not to the hourly measure as the mark of their jobs. In my field, lawyers too see the hours worked as entirely secondary to their jobs. For every such executive and professional who would be deemed "helped" by overtime laws that might be extended to apply to their jobs, there would undoubtedly be many who would recoil at the limitations of suddenly not being able to do their jobs without regard to the scope of hours worked. I don't believe that most such employees see their work as "slavery" when they have to work excessive hours. I think they see it as career development. And, in any case, the U.S. law gives such employees freedom to become "slaves" if they so choose for their own reason. It is the old freedom of contract and highly skilled, highly compensated workers in the U.S. retain that freedom to choose, as do their employers.
Work-life balance is very important as well, a point the author emphasizes. He seems to have made that choice later in life (as did I) and I commend him for it. But, while I can exhort others too to strive for such balance, I will not begrudge them the choice to work exceedingly hard (especially as they are first developing in their careers) to achieve other "unbalanced" goals. People do accomplish insanely great things by working insanely hard. If they choose to do this in their work as employees, that is their privilege and, as long as they are highly-skilled and highly compensated, I say more power to them if they do it without the benefit of protective labor laws.
- urbanjunkie 15y ago"I don't believe that most such employees see their work as "slavery" when they have to work excessive hours. I think they see it as career development" That made me laugh. "Top executives" typically have compensation packages that, to some degree, directly tie their compensation to the overall company performance. Thus, the harder they work, the more likely it is that the company will perform to or above expectations, and thus the more likely it is that their stock or option package compensate them for the "excessive hours". These "top executives" are also incentivised, by their compensation structure, to obtain as much value as possible out of fixed-cost resources. But, as an average employee, without generous option packages, you start to rationalise the 8th week of working 80 hours as "career development", because the alternative is to confront the fact that you are helpless and beholden and powerless to refuse to work the extra hours without risking your health insurance, or your job.
- orblivion 15y agoWould they keep their job if they refused to work more than 40 hours? Is there a 40 hour a week job out there that pays and furthers their career comperably? If not, I don't know what to call it other than career development.
- campnic 15y agoThe problem I see with many of these lines of thought are that they grossly over simplify the effects of situation and environmental factors. Even if there exists a comparable job with better hours, its existence doesn't always make it a viable alternative. Is being stuck in a mortgage or with a sick spouse license for an employer to demand you work 70 hours a week?
- tptacek 15y agoLook at it from a mechanically rational perspective. Your protagonist has a mortgage and a family and we're on a tech message board so let's stipulate that this is a technology worker making the average wage for, say, a programmer in Grand Rapids, MI. That's $73,000 (before benefits), or $35/hour for 40 hour weeks. You ask, "is being stuck in a mortgage with a sick spouse license for an employer to demand 70 hours a week?". Well, at 70 hours a week, our protagonist is effectively being paid $19.78 per hour. That's almost $2 higher than the average income of employees in Grand Rapids, MI. What you're effectively asking is, should it be lawful for employers to pay people less based on their situation? On the one hand, there are plenty of circumstances where it clearly isn't lawful to do that. For instance, you can't pay people less because they're of Indian origin, or because they practice Judaism, or because they're female. On the other hand, the circumstances of individual employees play into compensation decisions all the time in every job. You are effectively being paid less because of circumstances mostly out of your control any time you take a job outside of San Francisco or New York; the premium earned by technology workers in San Francisco exceeds cost-of-living adjustments significantly. So where do you draw the line? Is the line "you can't be paid less because of illnesses in your immediate family?" I'd agree with that rule, but how often does it really come into play? For what it's worth, speaking on behalf of an employer: we don't like 70 hour weeks. We work hard to keep them from happening and, for the most part, people get out the door here in time for dinner (it's hard to say, because some people stroll in the door just in time for lunch). Making people work overtime here, paid or not, is a bad idea because it makes it hard to retain talent. I'd like to think that if there was an economic rationale for overtaxing our team, we still wouldn't do that because it's immoral... but my morals haven't been tested on this issue, because it would be irrational of us to coerce people into working overtime.