Final answer:
It is false that true professional employees can never receive overtime compensation under the FLSA; certain categories may be exempt if they meet specific criteria. The first rule of labor markets is an economic principle and not a regulatory requirement.
Step-by-step explanation:
The statement that true professional employees may never receive overtime compensation due to the Fair Labor Standards Act (FLSA) is false. While the FLSA does establish the minimum wage, limit on child labor, and rules for overtime pay, it also provides exemptions.
Certain categories of employees, including bona fide executive, administrative, professional, and outside sales employees, as well as certain computer employees, may be exempt from overtime pay if they meet specific criteria related to job duties and, in some cases, compensation.
However, it's important to note that the so-called first rule of labor markets—that an employer will never pay a worker more than the value of the worker's marginal productivity—is an economic principle regarding wage determination and not a regulatory requirement. Restrictions of labor laws and other factors can influence employment conditions and the natural rate of unemployment, affecting hiring decisions and compensation practices within a firm or industry.