Originally posted by Oerdin
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To the extent that there is any friction at all caused by such a nonsensical distinction, it is a transaction cost placed between employers who would like employees to work longer hours and employees who would like to work longer hours, borne almost entirely by workers who would like to work longer hours (the elasticity of labor supply is far lower than the elasticity of labor demand).
This type of requirement (whether it be a waiver in the UK or exempt employee status in the US) is nothing more than a ridiculous intrusion of economic illiterates into private transactions.
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