Compensation Management

I need someone to do this ASAP!

A. Identify 1 issue or idea from the Module/Week 2 Case Study that you might have answered differently if you had the knowledge from the Module/Week 3 readings.

B. For the readings assigned this module/week, choose 1 key topic from the sub-headings in the table of contents. Briefly summarize the topic and find at least 2 scholarly sources that support or re-direct the topic. (Job evaluation techiniques)

Submit your thread by 11:59 p.m. (ET) on Thursday

Martocchio, J. (2015). Strategic Compensation: A Human Resource Management Approach. Upper Saddle River: Pearson Education, Inc. (textbook)

     As someone who has worked in the store for a number of years as a store manager, Jane Swift reasons for feeling that she deserves an increase in pay is well deserved since she has clocked extra hours than the usual quota. However, despite Amy insistence that she is exempt, special considerations should be taken in Amy’s case especially if she doesn’t earn more than $455 per week. Further, Jane is becoming increasingly involved in the manual operations of the company. She helps in the running affairs of the associates, by helping to expedite problems in the workplace (Wilkie, 2016). Therefore, Amy should consider the factors outlined below before she considers Jane to be exempt from overtime pay.

Why shift managers are considered to be exempt

     Shift managers are considered exempt because according to the Fair Labor and Standards Act, they are part of the executive decision of any organization. Therefore, they are not entitled to any overtime pay. According to this law, most shift managers are considered to be earning above $455 dollars per week and their jobs are majorly supervisory. Hence, giving a reprieve to most organizations not to consider paying managers for any overtime jobs. Therefore, since Jane gives an input when hiring or firing decisions are being made, she is exempt as a result of the duties she performs in the organization as well as her salary levels (Federal Register, 2016).

     In addition, the Jones department enjoys numerous advantages as a result of managers being in the exempt group. The company doesn’t suffer from increased operating expenses as a result of providing money to pay managers for their overtime in the organization. Thus, they are able to reduce its overhead costs since there is increased productivity being generated by unpaid labour. Therefore, it is advantageous to the store since the store is realising increased profits due to constant operating expenses and wages (Wilkie, 2016). Further, the store doesn’t have to regularly update their wages to cater for the high grade workers like Jane.

Analysis of whether shift managers are properly classified as exempt.

     Shift leaders are not properly classified as exempt. This can be clearly indicated by the case of Family Dollar Stores, Inc. Which was ordered by the court to pay more than 1400 workers over $35 million in overtime charges (Paterson, 2010). This is because, for a worker to be considered exempt, they must earn at least $455 dollars per hour. In addition, their overtime activities should only be on supervisory role and should not be delegated to any associate worker’s duties like being a cashier.

     In addition, most organizations always abuse this clause making sure that workers clock overtime hours of more than 20 hours per week yet they are unpaid. Therefore, to be fully considered exempt, shift managers should be paid the same amounts as the assistant managers who work within the store. Therefore, even though the duties performed by shift managers categorize them as an exempt group, their salary scales and duties performed in the workplace do not make management to be their primary duty since they are involved in other processes like running registers (Golden, 2014). As was indicated by the ruling which was made on Family Dollar Inc., Managers should only be exempt if they have the powers to hire, fire and promote workers or are highly influential in making these major decisions, however, this case does not apply to shift managers like the case of Jane.

What factors Amy should consider in analysing the exemption of shift managers.

     Amy should critically evaluate factors such as whether the shift managers are closely supervised by the assistant managers or whether they expend their managerial duties on their won. In addition, she should evaluate the amount of time the shift managers spent on manual operations like running registers or stocking shelves. Further, she should also evaluate the whether the shift managers are involved in major decisions like hiring, firing or promoting the employees (Federal Register, 2016). By critically evaluating the above factors, Amy will be able to gauge whether shift managers like Jane Swift are actively involved in managerial processes or if their functions are part of the workforce (Resources, 2016).

     In addition, Amy should also consider the pay grades of the shift managers and compare them with those of the assistant managers while at the same time evaluating the work done by these executive decisions. If their salary differences are close, then she can fully classify shift managers to be exempt. However, if their pay grade falls below $455 dollars, then shift managers are to be considered non-exempt (Golden, 2014).

Conclusion

     Most workers in managerial positions are being faced with the dilemma of whether to quit or ask for a pay increase as a result of clocking overtime hours as analyzed above. However, since most of this workers are considered to be exempt under the fair labour standards act. Most of them end up working in places where they feel they are unappreciated as illustrated by Jane swift’s case. Therefore, for organizations to classify workers to be exempt, their salary levels should be over $455 per week and they should only be involved in managerial work and not manual operations (Northwestern University Office of Human Resources, 2016).

References

Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees. (2016). Federal Register. Retrieved 11 September 2016, from https://www.federalregister.gov/documents/2016/05/23/2016-11754/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and

Exempt or Not Exempt? The Fair Labor Standards Act (FLSA). (2016). Northwestern University Office of Human Resources. Retrieved 9 September 2016, from http://www.northwestern.edu/hr/compensation/Exempt%20or%20Nonexempt.pdf

Golden, L. (2014). Flexibility and Overtime Among Hourly and Salaried Workers When You Have Little Flexibility, You Have Little To Lose. Epi.org. Retrieved 11 September 2016, from http://www.epi.org/publication/flexibility-overtime-hourly-salaried-workers/

Paterson, K. (2010). CorpWatch : Dollar Stores: Top Link in the Sweatshop Chain.Corpwatch.org. Retrieved 10 September 2016, from http://www.corpwatch.org/article.php?id=15629

Resources, V. (2016). Non-exempt and exempt. Purdue.edu. Retrieved 10 September 2016, from http://www.purdue.edu/hr/LeadingEdition/LEdi_704_exempt_nonexempt.html

Wilkie, D. (2016). Breaking the News: When Workers Lose Their Exempt Status. Shrm.org. Retrieved 9 September 2016, from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/overtime-rule.aspx