Jeremy’s Sweater Factory employs two managers for the factory. These managers work 12 hours per day at $15 per hour. After eight hours, they receive overtime pay. Management is trying to cut costs. They have decided to promote the managers to a salary position. The managers will be offered a daily salary of $200. Since they would be promoted to a salary position they will not receive overtime. The company has required they accept the promotion or find employment elsewhere. Is it ethical for the company to offer the managers a salary position? Is it ethical to require the employee to accept the promotion? Should the managers accept the promotion?
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