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Fair Labor Standards Act
The Fair Labor Standards Act (FLSA) sets standards for the minimum age for workers, minimum wages they can make, and the rate at which they must be paid if they work over a certain amount of time during a workweek. The minimum wage, and mandatory benefits that must be provided to employees (unemployment insurance, Social Security, etc.), can dramatically raise the cost of hiring employees. In fact, the move towards a national insurance program has dramatically increased costs of hiring employees.
Analyze the impact of the minimum wage of employees and employers, and discuss how an employer can fund the increasing costs of hiring employees and still remain competitive throughout the globally competitive environment. In particular, discuss the impact that higher wages have on employee productivity.
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