Question

CHAPTER2 CONTERTO CASE Exempt or Nonexempt? An additional Supplemental Case can be found on MyManag ementLab. She's worked Jane Swift is becoming frustrated with her job as a shift leader at Jones Department Store. eft k. She doesn't mind formed haveI there for 6 months, and the full-time job has turned into more than full time. Several associates the store, and as a result, the past several weeks she has worked 45-50 hours each wee working the extra hours; she is just frustrated because she is not getting paid overtime pay She asked the store manager, Amy Kostner, about the overtime pay she was due. Amy in Jane that shift leaders are part of the management team and are classified as exempt under Standards Act. The store is not required to pay exempt workers overtime pay Jane agrees that she is part of the management team. As a shift leader, Jane runs the floor when she on duty. One of the assistant managers sets the daily schedule of associates each week, but Jane and other shift leaders assign the associates to various work areas as needed. Depending on store trattic, need to be moved from stocking shelves and cleaning to cashiering or assisting customers. ing on such management responsibilities, the shift leaders generally assume the duties o When not work- f associates by Jane reports that she typically spends only a little more than half of her assisting customers and cashiering, Jane reports that she typically spends only a litl more than half of her time performing associate duties. Shift leaders are also involved in managerial decisions. For example, they often sit in on employment interviews and typically are aware of employee terminations before the employee is fired. They also give feedback about the associates to the assistant managers who write the annual performance appra isals Just like a manager, Jane makes a lot of decisions during the course of her shift each day. If there is a dispute on a sale price, Jane searches the weekly sales flyer to determine the correct price. If a custo has a return, Jane reviews the transaction and initials it before the cashier can give a refund. However, she does not have complete autonomy in making decisions. For example, if a return is greater than $50.00, an assistant manager or the store manager needs to approve the refund. mer But even though she agrees that she is part of the management team, Jane isn't satisfied with Amy's answer on her question about pay. If she isn't eligible for overtime pay, she thinks that she should be paid more. While she is paid at a higher rate than most of the associates, she is not paid nearly as much as the assistant managers. A pay increase or overtime pay would at least make it worthwhile for her to put in the extra hours. Questions: 2-6. Why did Amy classify the shift leaders as exempt? Are there any advantages to Jones Department Store to having the shift leaders classified as exempt? Do you think that the shift leaders are properly classified as exempt? Why or why not? What are some factors that Amy should consider when determining whether shift leaders are exempt or nonexempt? 2-7. 2-8. Crunch the Numbers! hether to Work Overtime or Hire Additional Employees An additional Crunch the Numbers! exercise can be found on myma nagementlab.com eFair Labor Standards Act requires employers to pay nonexempt status employees an overtime rat t equal to 1.5 times the normal hourly wage for each hour worked beyond the 40-hour work week neriod

Answer 1

The answers are

2-6) The Amy classify the shift leaders as exempt because according to the fair labour standard act all jobs are not considered as overtime pay and she considered those as a part of management team.

So that the management team have such duties run the floor, sets schedules and shift leader puts employees in various work positions in which they are capable and strong, and that the shift leaders get paid more than associate and less than assistant manager because shift leaders are considered that management they are exempt.

The advantages to jones department store is making their shift leaders as exempt, and they are paying the employee more.

2-7) In this case i think yes, shift leaders are properly classisfied as exempt, the assumption is that they are compensated over or atleast guidelines set by FLSA

Some of the guidelines of FLSA are,

To qualify the exemption and generally employees must be paid not less than $455 per week on salary basis.

3-8) Some of the factors that Amy should consider is,

1) on the day to day performance of knowing the distinction between exempt and non exempt duties.

2) The comparison of each employee's salary and wages that are paid to other employees.

3) The other factor is how much time the employees contribute while performing exempt work as well as non exempt work.

4) The criteria for fair pay rules must be met.

Thank you , have a nice day.