Time's Up: Overwork, Employee Rights, and U.S. Labor Law

By Amanda Damayanti

Amanda Damayanti is an exchange student from Indonesia at the University of Pennsylvania. She is currently pursuing a law degree in the Faculty of Law at the University of Indonesia.

In July 2023, the Royal Assent for its Employment Relation (Flexible Working) Act 2023 was passed in the United Kingdom. [1] The relatively new law gives employees more power to control their working hours. [2] Employees have more flexible start and finish work times and more leniency concerning working from home. Additionally, the new bill increased the number of requests employees can file for the flexible working hour, which employers can’t deny without first discussing with the employee. [3]
​
In contrast to the United Kingdom, the United States of America is the most overworked developed country in the world. [4] The country is still lagging behind other developed countries in terms of working hours, overwork pay, paternal leave, and wages. [5] There is a trend showing that the richer the nation is, the fewer the employee working hours will be, and the more freetime they will have. [6] In 2023, the United States itself experienced strong economic growth because of its increase in Gross Domestic Product (GDP) and decrease in inflation. [7] The United States has the largest GDP in the world with an annual rate of 4.9 percent in the third quarter of 2023. [8] Despite this, the reality is that employees in the United States work more hours compared to those in Germany, the United Kingdom, Norway, and Japan. [9] This begs the question: does the United State’s increase in economic wealth trickle down to its employees?
​

The United States’s regulation regarding employment is stipulated under the 1938 Fair Labor Standards Act. The act regulates the overwork pays of employees and how it differs between 2 types of employees, namely salaried and hourly paid. Employers are required to pay hourly employees time and a half for any hours over 40 in a workweek; for salaried employees, employers are able to put in unlimited hours and have no additional direct cost to the company for overtime. [10] The 1938 Fair Labor Standards Act does not prohibit mandatory overtime, nor does it require employers to give advance notice of the overtime. [11] This means that employees do not have the ability to refuse the overtime working hours and are unaware of when the overtime hours take place.
​
In comparison to other Organisation for Economic Co-operation and Development (OECD) member countries, the United States is the only country without statutory minimum days of annual leave and mandated paid parental leave. It is also one of two countries without a mandated sick leave. [12] The OECD country with the highest statutory minimum for annual leave is the United Kingdom, with 28 days. [13] Another country for a comparison is Norway, with a statutory minimum of 21 days for annual leave, still much higher than the United States’s nonexistent statutory minimum. In Norway’s labor law, the employees have a right to a fewer working hours due to health, social, and/or welfare reasons. On top of that, the law is more employee friendly, as it ensures a predictable and safe working environment for the employees. In regards to working hours, it is usually 37.5–40 hours per week and the employees must be paid for overtime if they exceed 40 hours a week. The overtime employees are then entitled to get 140% of their original hourly rate.

American employees still face challenges in the employment regulations, such as working hours, paid leave, and less support for family needs compared to employees in other developed countries. The labor laws in the U.S. are mainly covered by the Fair Labor Standards Act of 1938, but there are some issues on the limit of working hours and overtime notice to employees. Unlike many other developed countries, the U.S. doesn't guarantee a minimum number of vacation days, paid parental leave, or mandatory sick leave. Looking at what other countries, like the United Kingdom and Norway, are doing to improve working conditions might provide some useful lessons for the U.S. It's important to think about how labor law stipulations can better meet the needs of today's employees and ensure their welfare reflects the country's economic success.
​

[1] Changes in the Flexible Working Regime in the UK: What Employers Need to Know, Littler Mendelson P.C., accessed on November 9, 2023, https://www.littler.com/publication-press/publication/changes-flexible-working-regime-uk-what-employers-need-know.

[2] "Flexible working," Gov.uk, accessed November 9, 2023 ,https://www.gov.uk/flexible-working.

[3] Allan and Karandikar, “Changes to Flexible Working Regime in the UK – What Employers Need to Know,” Littler, accessed on November 8, 2023, https://www.littler.com/publication-press/publication/changes-flexible-working-regime-uk-what-employers-need-know.

[4] Miller, “The U.S. is the Most Overworked Developed Nation in the World,” 20somethingfinance, accessed on November 8, 2023,   https://20somethingfinance.com/american-hours-worked-productivity-vacation/.

[5] Ibid.

[6] Ibid.

[7] US GDP grew at a 4.9% annual pace in the third quarter, better than expected," CNBC, October 26, 2023,  https://www.cnbc.com/2023/10/26/us-gdp-grew-at-a-4point9percent-annual-pace-in-the-third-quarter-better-than-expected.html#:~:text=Gross%20domestic%20product%2C%20a%20measure,residential%20investment%20and%20government%20spending.

[8] Ibid.

[9] Hart and Tabahriti, “Here's a Look at How Work-life Balance Compares in the US, France, Australia, and the UK,” accessed on November 9, 2023, https://www.businessinsider.com/work-life-balance-of-us-france-uk-australia-compared-2023-3#:~:text=In%20the%20US%2C%20employees%20worked,clocking%20400%20hours%20more%20annually.

[10] Fair Labor Standards Act of 1938, Pub. L. No. 75-718, 52 Stat. 1060 (1938), https://www.dol.gov/general/aboutdol/history/flsa1938#:~:text=Generally%2C%20the%20bill%20provided%20for,outside%20of%20mining%20and%20manufacturing.

[11] Ibid.

[12] Cheadle, “New Report Confirms Just How Shitty US Workers Have It,” Vice, accessed on November 8, 2023, https://www.vice.com/en/article/ywajnj/new-report-confirms-just-how-shitty-us-workers-have-it.

[13] Zane, "Are Americans Overworked?" Zippia, accessed on November 9, 2023. https://www.zippia.com/advice/are-americans-overworked/.

The opinions and views expressed in this publication are the opinions of the designated authors and do not reflect the opinions or views of the Penn Undergraduate Law Journal, our staff, or our clients.