In: Business and Management

Submitted By jmmacduff
Words 836
Pages 4
|Becker College |
|Class V, Essay |

|Jennifer Macduff |
|12/15/2015 |

The employee working at the upscale coffee shop was promoted from Barista to Manager. The manager was reclassified as exempt and will not be receiving overtime pay. The Manager, in addition to being responsible for managing and making sure the store runs smoothly, performed non-management type work; waiting on customers, checking supplies and cleaning bathrooms. The manager feels that although they are involved in interviewing that ultimately the District Manager makes the decision. The manager is thinking that they should be considered non-exempt and be paid for overtime work.

Would this company be able to document that the store managers are exempt from the FLSA (not to mention similar state laws)?

If the employer has not adequately maintained records the court could accept the Managers claim and give the employer the burden of disproving the allegations. Under FLSA the employer automatically bears that burden. The company should be able to document that the Manager’s primary duty is managing the store, that they direct the work of two or more employees and has the authority or input into hiring, firing and advancement of employees.

The rule of thumb is that the exempt employee devotes substantial time to supervision. That includes training workers,…...

Similar Documents

Exempt and Non-Exempt

...Compensation: Strategic Perspective [ November 4, 2012 ] Dr. Richardson Abstract A majority of jobs are overseen by the Fair Labor Standards Act (FLSA), while some are not a part of the FLSA coverage by statute of the job. Others jobs are mandated by the FLSA but are considered to be exempt from the FLSA overtime rules (www.flsa.com/coverage.html). The FLSA of 1938 was put into place to addresses issues that had intensified during the depression when the United States was transitioning from one of agriculture to industrial enterprises. Exempt and non-exempt take into consideration the status of an employee in regards to their overtime pay under FLSA and if the employees position does not come under a particular category i.e. administrative, professional, and executive, then that job is considered to be covered by overtime and minimum wage provisions (Martocchio, 2011). Major Employee Groups (exempt and non-exempt) that Make up an Organization Employee groups come under two general headings, those of exempt and non-exempt. Both take into consideration the status of an employee in regards to their overtime pay under FLSA and if the employees job doesn't fall into a certain category i.e. administrative, professional, and executive, then they are generally covered by overtime and minimum wage provisions (Martocchio, 2011). The FLSA was written in order to protect workers such as those in textiles, from being required to work long hours without being compensated......

Words: 1201 - Pages: 5

Activate Your Network

...compensation plan. It is believed that employees that work in the biotechnology industry are exposed regularly to health and security hazards. The biotechnology industry is also believed to involve in world shattering implications that may consist of moral and ethical issues. I have listed some of the laws relating to the compensation plan in the Biotechnology Industry that will assist with the identifying the different The following are some of the laws relating to compensation plan in the industry that helps in identifying the different aspects of pay; For example the Fair Labor Standards Act (FLSA) consist of five major compensation laws that regulates minimum wage, overtime pay, equal pay, recordkeeping requirement, and child labor. For the most part the FLSA regulations impact non-exempt employees. There’s also the Equal Pay Act of 1963 which is an amendment to FLSA. The Equal Pay Act which makes is against the law to compensation based on sex for men and women in the same workplace whose jobs are similar. While it doesn’t prohibit pay being base on seniority systems, merit systems, or systems that bases pay on how well the employee performs. There are also laws in place that regulates pension programs such as Survivors, Disability and Health Insurance Program (OASDHI), this law is what has form the base for most of the benefit programs and implementation of unemployment insurance, equal employment, worker’s comp, Social Security, Medicare, and Medicaid......

Words: 358 - Pages: 2

Zheng V. Liberty Apparel Company

...Association. This case asks us to decide whether garment manufacturers who hired contractors to stitch and finish pieces of clothing were “joint employers” within the meaning of the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. § 201 et seq., and New York law.   Plaintiffs, garment workers in New York City who were directly employed by the contractors, claim that the manufacturers were their joint employers because they worked predominantly on the manufacturers' garments, they performed a line-job that was integral to the production of the manufacturer's product, and their work was frequently and directly supervised by the manufacturers' agents.   The manufacturers respond that the contractors, who, among other things, hired and paid plaintiffs to assemble clothing for numerous manufacturers, were plaintiffs' sole employers.   Both plaintiffs and the manufacturers moved for summary judgment on the issue of joint employment. The United States District Court for the Southern District of New York (Richard Conway Casey, Judge ), applying the four-factor test set forth in Carter v. Dutchess Community College, 735 F.2d 8 (2d Cir.1984), granted the manufacturers' motion, and held that the manufacturers could not be held liable for violations of the FLSA or its New York statutory analogues.   The District Court also declined to exercise supplemental jurisdiction over a surviving New York claim. We conclude that the District Court erred when it limited its analysis to......

Words: 10036 - Pages: 41

Employment Law Scenario

...members of the LLC are held accountable for sustaining and maintaining the mission and vision of the company. The operation of the LLC is seen as an extension of the company’s mission and vision. The treatment and compensation extended to the employees show the value a company has in its employees. The law is in place to ensure that employers value those they employ. Employment law is something every company should review and know on the local, state, and federal level. Barbara’s Bakery, LLC are taking precautions to make sure that the company follows the employment law to the letter. In light of that, making sure that Barbara’s Bakery, LLC follows the law regarding the Fair Labor Standards Act of 1938 (FLSA) and Age Discrimination in Employment Act of 1967 (ADEA). FLSA is law put in place to established minimum wages, overtime pay requirements, and child labor laws. In regards to Barbara’s Bakery, LLC, the company wants to make sure that the Fair Labor Standards Act is followed. Upon hiring new employees to work various shifts at the bakery, the hiring manager or owner should adhere to the following guidelines: * Federal Minimum Wage is $7.25 per hour. * Overtime is to be paid at a rate of 1 ½ times over 40 work hours in a workweek * For youth employment: An employee must be at least 16 years of age in non-farming positions working under the following conditions. An employee must be 18 years of age to work in a non-farming hazardous position as......

Words: 1196 - Pages: 5

Employment Law Compliance Memo

...Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), and the Texas Commission on Human Rights Act (TCHRA). Next, I will cover the employment laws connected with the application process and interview questions. Under this section we will discuss the Equal Opportunity Commission (EEOC), negligent hiring, and the Immigration Reform and Control Act. In addition to these laws I will be discussing the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and the State Directory of New Hires Act under the Texas Laws (Texas Young Lawyers Assoc., 2008). The last set of employment laws we will cover are connected with employee hours and pay. Under this section I will discuss the Fair Labor Standards Act (FLSA), minimal wage under Federal Law, overtime pay, record keeping, and child labor standards. Hiring your First Employees: Important “Acts” The Title VII of the Civil Rights Act of 1964 prohibits any form of job discrimination by an employer against any potential employee in regards to their compensation, terns, conditions, or benefits of employment depend on an individual’s race, skin color, religious beliefs, gender or national origin (Texas Young Lawyers Assoc., 2008). It is important that you understand these terms and recognize that you are prohibited to use any of these factors in deciding which candidates to hire or not too hire for the job. The Americans with Disabilities Act deems it unethical and illegal......

Words: 1359 - Pages: 6

Flsa Week 6

...Determine whether the employee has a potential FLSA claim. Explain the legal basis for your conclusion. From an HR perspective list, explain and analyze five things an employer can do to ensure compliance with FLSA and avoid claims. After listening to the FLSA tutorial, Mike does not have a clam. In the tutorial, Mike cited that he was due 36 hours in overtime payment for working out because his work out were related to him building physical strength for work. He also cited that he was given workout time while on the clock but felt that he that he needed additional workout time. According to the US Department of Labor (DOL), an employee must be compensated for the actual hours worked, whether it be time spent in trainings, lectures, meetings or any other occurrence during work hours (Dorris, 2009). The caveat here is if the employee voluntarily performs those assignments outside regular working hours, and the course, lecture, or meeting is not job related or the employee does not perform any productive work during attendance, then he or she is not covered un the FLSA. I believe Mike is not covered because as stated above, his position as on the SWAT allots a predetermined amount of time for him to work out to remain in shape. These hours were determined to be adequate, therefore anything in excess of those hours are considered personal time. Since he is a part of the SWAT team, it is not unusual that he would spend more time in the gym or working out, it’s just that the...

Words: 610 - Pages: 3

Government and Legal Issues in Compensation

...| GOVERNMENT AND LEGAL ISSUES IN COMPENSATION | | | Wendy Kendall | | | Abstract The Fair Labor Standards Act (FLSA) was designed in an effort to bring the United States out of the Great Depression, but has evolved into one of the most important legislative measures to ensure fairness for all employees. This paper highlights government’s role in the compensation as well as the main provisions of the FLSA including minimum wage, overtime, record-keeping, and child labor laws. It also illustrates real and potential costs of non-compliance. Keywords: FLSA, minimum wage, overtime, child labor laws Introduction The main objective of government’s role in compensation is to assure that procedures for determining pay are fair to all. Government intervention in the compensation process includes equal pay for both men and women when performing equal or similar jobs, eliminating exploitation of children, and safety nets for unemployment and the disadvantaged. Beginning with the creation of the Bureau of Labor in 1888, government intervention has addressed many injustices, and continues to update them as new issues arise. The purpose of this paper is to track the evolution of government’s role in the compensation process, expand on some of the more prevalent laws, and highlight class action or individual legal actions against companies that violate these regulations. History Government intervention in the labor market began in 1867 when the House of......

Words: 5815 - Pages: 24

Employement Law Compliance Plan Memo

...federal employment law that are most pertinent to the establishment and operation of your new facility. Fair Labor Standards Act of 1938 The "Wages And Hours Worked: Minimum Wage And Overtime Pay" (2009) website indicates that the Fair Labor Standards Act of 1938 (FLSA) is administered by the Wage and Hour Division (WHD) establishes minimum wages, overtime pay, recordkeeping and child labor standards for employees who are paid at least $1,700 in a calendar year or work more than eight hours a week. FLSA requires that employees be paid a minimum of $7.25 an hour. This is slightly lower than Arizona’s minimum wage standard, but I’ll cover that under the Arizona specific employment laws below. It’s important to note that you must post and keep posted the minimum wage provision outlined by FLSA in conspicuous place within your facility. You’ll need to ensure that records are well kept for all nonexempt employees regarding their hours, wages, etc. You can find more detailed information on the United States Department of Labor Website at http://www.dol.gov/compliance/guide/minwage.htm. Failure to comply with the regulations set forth in the FLSA can result in significant penalties. Willful violations of the FLSA may be criminally prosecuted and fined up to $10,000. A second conviction could result in imprisonment. Occupational Safety and Health Act of 1970 The Occupational Safety and Health Act of 1970 (OSHA) applies to all employees working within the 50......

Words: 1020 - Pages: 5

Conducting Through Job Analyses and Drafting Lawful Job Descriptions

...employee’s position (Smith 2015). A job analysis determines what the essential job functions are and helps avoid breaking ADA law or FLSA. Having a job analysis before creating a job description also helps prevent pointless and obvious statements in the description as well as highlight the tasks that are most important and take up the bulk of the time for the job. It is important to properly obtain the fundamental information to conclude job content, as well as essential and nonessential functions; requisite insight, skill, intelligence, expertise, and experience necessary to perform the job; and working conditions of the employee (Smith). 2. The preparing of an accurate job analysis starts with owners, upper-level managers, and executives educating their employees of the need for accuracy and impartiality throughout the process. Employees need to contribute and feel ownership in the analysis, but there are flaws to having employees help. Employees could inadvertently mischaracterize their daily job tasks or responsibilities, and managers may disagree with what the employees actually do and that is why there needs to be a system and structure to the process. 3. A job analysis could help prove the compliance with all the employment laws such as demonstrating a position’s essential functions of a job for purposes of compliance with the ADA or FLSA-exemption determination (Smith 2015). The analysis could also help serve as the foundation for preparing consistent and......

Words: 748 - Pages: 3

Compliance Memo

...Compliance Plan As per your conversation with Traci regarding Landslide Limousine, a company which is projected to have 25 employees within the first year of operations, the following memo will outline some of the federal and state employment laws relevant to the operation of Landslide Limousine, as well as potential consequences of non-compliance. A vital law of relevance to all employers is the Fair Labor Standards Act (FLSA), which has the current minimum wage listed as $7.25 per hour. This law requires that there is a poster visible to employees outlining the FLSA requirements, accurate recordkeeping is kept of each employee’s hours worked, employees are paid overtime at a rate of one and a half times the minimum wage for all hours worked over 40 in a workweek, and that any employee under the age of sixteen is not working too many hours per week. Violations of the FLSA can result in criminal and civil penalties, depending on the nature of the infraction. Though Landslide Limousine will be able to hire employees under the age of 18, FLSA is not the only law which restricts the duties they can perform. Under Hazardous Occupations Order No. 2 (HO 2), employees under the age of 18 may not be used in the hired transportation of passengers, among other restrictions. Any employees aged 17 are able to drive for their job, but are restricted in many ways and may only drive occasionally. When driving, there are numerous limitations including, but not limited to: only......

Words: 728 - Pages: 3

Landslide Limousines Employment Law Compliance Plan

...employees of small businesses that are not covered by the Fair Labor Standards Act (FLSA). The FLSA will be applicable once Landslide Limousines has more than $500,000 in business. Should Landslide Limousines decide to transport passengers across state lines, the FLSA would be immediately applicable. The Texas Minimum Wage Act also requires employers to provide employees with a written statement of earnings for each pay period showing hour many hours were worked and the pay per hour rate.(Dolghih, n.d.) The FLSA would provide additional requirements for overtime and classification of exempt and nonexempt employee status. Mr. Stonefield will have to determine if he will allow his employees to accept tips or not, as this can affect the necessity to pay minimum wage. According to "Labor Code Title 2 Protection Of Laborers" (n.d.),  “A "tipped employee" means an employee engaged in an occupation in which the employee customarily and regularly receives more than $20 a month in tips.” (Sec. 62.052. TIPPED EMPLOYEES). The Texas Minimum Wage Act is enforced by the Texas Workforce Commission. Violators of the Texas Minimum Wage Act are liable to pay all unpaid wages plus, additional amount of liquidated damages, court cost and attorney fees. If and when the FLSA becomes applicable, it is enforced by the Department of Labor with the same penalties and the Texas Minimum Wage Act. Additionally under FLSA, employers may be assessed civil money penalties of up to $1,100 for each......

Words: 1299 - Pages: 6

Employment Law Compliance Plan

...business to another state, also will provide a brief summary of each law and the consequences of noncompliance with those laws. Employment law in Michigan and Detroit are regulated by state and federal law, one of the major federal law that affects almost every organization in the United States, the Fair Labor Standards Act (FLSA) (Cascio, 2013, p. 456). The Fair Labor Standards Act (FLSA) The FLSA establishes minimum wage, overtime pay, record keeping and child labor standards covering full-time and part-time workers in the private sector and in federal, state and local government. (azleg.gov, 2013, p.3) and also is credited for the establishment of the first minimum wage in 1938 of .25 cents an hour. The FLSA covers both exempt employees (exempt from the overtime provisions of the law) and nonexempt employees (Cascio, 2013, p. 456) and these federal regulations are enforced and administred by The U.S. Department of Labor (DOL). Although both states, Michigan and Arizona, have to remain compliant with the FLSA to avoid fines and other punishments for non-compliant, they have slightly different state law in regards to employment topics covered under the FLSA such minimum wage and overtime, that the HR Directors at Clapton Commercial Construction would have to adjust to with an expansion to Arizona. Minimum Wage Law In 2007 President Bush signed legislations increasing the federal minimum wage, which is currently $7.25, in states where the state minimum wage mandates a......

Words: 1294 - Pages: 6

Fair Labor Standard Act

...the federal minimum wage for all employees and sets requirements for overtime for employees as well. The FLSA also defines the forty hour work week for employees and places restrictions on child labor. The Fair Labor Standards Act has been amended several times to expand the law to require employees both male and female to receive equal pay for work that is equal in skill, effort and responsibility. Additional provisions required that records be kept of all employees, their hours worked, and their pay (Milkovich & Newman, 2014, p.596). The Fair Labor Standards Act was passed to buckle down on employers who were forcing employees to work excessive hours without being fairly compensated and from working in unsafe and unhealthy working conditions. As a result, this act helps as many workers as possible come within the protection of the law. RECORD KEEPING: CLASSIFYING EMPLOYEES AS EXEMPT VS NON-EXEMPT Under the Fair Labor Standards Act, employers are required to keep records of both non-exempt and exempt employees. Accurate information about the hours each employee worked and wages each employee earned should be recorded as well. Exempt workers must also have all this pertinent information on file in case they are challenged. Employers whose workers are completely exempt, are the only ones who can be exempt from the requirements for recordkeeping. While the FLSA requires both a minimum wage and overtime, some employees can be exempt from one or both provisions......

Words: 2145 - Pages: 9

Employment Laws

...Medical Act of 1993”. It is important that we as HR management students understand these laws properly to implement them appropriately in the workplace. This paper will consist of details of the Fair Labor Standards Act and the Title VII of the Civil Rights Act. Fair Labor Standards Act (1938) – The Fair Labor Standards Act (FLSA) establishes minimum wage, and overtime pay affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. As mentioned in the US Department of Labor website, the FLSA requires the federal minimum wage of $7.25 per hour effective July 24, 2009. Many states have their own minimum wage defined. So, employees who are subject to both federal and state laws are required to be paid the higher minimum wage. Also, the employee is required to be paid an overtime at a rate not less than 1.5 times the regular pay rate for hours worked exceeding 40 hours in a week. There are no directives under this law for any other premium payments for hours worked on holidays or weekends if the hours worked have not exceeded 40 hours. Employers are required to display an official poster outlining the requirements of FLSA and must keep records of employee hours and wages. There are a number of E-tools provided in the DOL website to help employers correctly interpret this law and comply with it. This law was established at a time when the American jobs were mostly manufacturing. In today’s world, where the jobs have moved from......

Words: 2329 - Pages: 10

Flsa Assignment

...Based on the evidence in the tutorial, I do not believe that the employee has a legitimate claim according to the FLSA laws and policy. This is mainly based on the idea that the employee did not accurately track their on-call time and the fact that his workout on the off duty time is not required for the position. According to the US Department of Labor http://www.dol.gov/whd/regs/compliance/whdfs22.pdf, on-call time is defined as “an employee who is required to remain on call on the employer’s premises is working while on-call, but an employee who is required to remain on call at home, or who is allowed to leave a message where he/she can be reached, is not working while on call.” Since the employee was not onsite, according to the DOL, the employer is not liable for compensating him for those hours. The DOL also defines hours worked as “includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal activity of the workday to the end of the last principal activity of the workday. Since the last principal activity of the workday occurs onsite, the additional time put into the workouts at home should not be compensated. The company also allows the employees time for training during the workday and this should be taken into consideration when the FLSA makes a judgment. Since the other employees are able to complete the necessary training during the allotted time, there......

Words: 544 - Pages: 3