by George Leef
Now he is meddling in wage and hour matters by telling the Department of Labor to reformulate the regulations on overtime so that (ta da!) lots more Americans will get pay increases. Walter Olson of Cato Institute explains here. He likens Obama’s regulatory binge to the actions of a toddler throwing a tantrum.
The Fair Labor Standards Act is the federal statute that imposes the minimum wage along with other intrusions into what ought to be matters of contract between the parties.There is no real constitutional authority for the federal government to dictate the terms of labor contracts. During the New Deal, Congress relied upon the notion that if anything might have any possible effect on interstate commerce, then it’s fair game for federal control. That idea stretches the concept of interstate commerce far beyond its intended meaning.