Strategic Compensation chapter 2 case, page 47
Exempt or Nonexempt
Jane Swift is becoming frustrated with her job as a shift leader at Jones Department Store. She’s worked there for 6 months, and the full-time job has turned into more than full time. Several associates have left the store, and as a result, the past several weeks she has worked 45–50 hours each week. She doesn’t mind 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 informed Jane that shift leaders are part of the management team and are classified as exempt under the Fair Labor 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 is 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 traffic, associates need to be moved from stocking shelves and cleaning to cashiering or assisting customers. When not work- ing on such management responsibilities, the shift leaders generally assume the duties of associates by assisting customers and cashiering. Jane reports that she typically spends only a little 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 appraisals.
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 customer 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.
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.
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?
2-7.Do you think that the shift leaders are properly classified as exempt? Why or why not?
2-8.What are some factors that Amy should consider when determining whether shift leaders are
exempt or nonexempt?
Page 22 case:
Crunch the numbers!
Calculating the Costs of Increasing the Total Compensation Budget at Butcher Enterprises
Butcher Enterprises has experienced substantial employee turnover among its office workers. During exit interviews, more than 80 percent stated that low pay was the top reason for resigning. The company con- ducted a survey of local companies’ pay practices to confirm whether this concern is valid. Indeed, Butcher Enterprises’ average hourly pay rate for total compensation falls well below the market. The compensation survey showed an average hourly rate of $23 for total compensation. Of this amount, wages are $16 per hour and benefits are $7 per hour. In comparison, Butcher Enterprises spends an average hourly rate of $19 for total compensation. Of this amount, 70 percent is allocated for wages.
1-7. On an average hourly basis, how much does Butcher Enterprises spend on wages and benefits, respectively, in dollars?
1-8. How much does the company spend on wages and benefits over the course of one year for 100 office workers? Assume that each worker provides 2,080 hours of service each year.
1-9. How much additional money does the company need to match the market rates for this group of 100 employees?
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.