BARISTA TO MANAGER 5
It is clear from the case, , that there arevarious underlying issues which require the attention of themanagement. It is evident from the case that the manager is beingmistreated and underpaid. According to the Fair Labor Standards Act,an employee should work for 40 hours per week and any overtime shouldbe compensated at the rate of 1.5 that of normal hours. The managerat the upscale coffee store is not paid his overtime of 15 hours perweek. The other issue which is evident in the case is the fact thatthe manager is assigned duties which should be done by subordinatestaff such as cleaning the bathrooms. Additionally, it is has beenpointed out in the case that the manager has little or no say in thehiring process since the district manager seems to know the people heis going to hire. The failure to pay the manager by HR for the extrahours he works per week is indeed a violation of the FLSAregulations.
It is difficult for this company to document that the managers areexempt from the FLSA. This is because the duties of the manager arenon-exempt. It is essential to state that the basis for exemptionwill have to be analyzed on the basis of the amount of salary of theemployee, performance of exempt jobs and whether the employee issalaried. For the company to document that the managers are exemptemployees, it must prove that the employees receive more than $455per week, are salaried and they perform exempt duties. The companymay wish to classify the managers are exempt since paying them forovertime would be extremely. The managers would demand to be paid atthe rate of 1.5 per hour to the normal pay. There are various factswhich affect this case and which must be addressed to ensure that themanager is not only treated fairly, but also paid for the hours thathe works per week. To start with, it is clear what the FLSA statesabout fair treatment of employees. The manager is not paid for theextra hours he works. Additionally, the manager performs duties whichare not defined in his contract. There is also lack of fair treatmentto the manager.
It is clear that the company is totally against the FLSA regulationsof fair labor relations. It is essential for management of thecompany to reconsider their treatment of the managers in the stores.Whereas the company may be underpaying and overworking the managers,it is clear that the economy is at its worst and jobs are extremelyfew (Weir, 2012). If the economy picks up, the manager is bound toleave for other companies where he will be paid well for the hoursworked. This would be one of the bothers to the company. Besideslosing the experienced employees, the company would be having therisk of destroying its reputation (Kearns et al., 2012). Companieswhich fail to pay their employees according to the FLSA regulationsdo not attract the best employees hence their performance goes down.It is also vital to note that losing the managers to other rivalcompanies would increase competition for the company hence loweringsales volume and the profits.
There are other big corporations which have been faced by suchissues. One of them is the Starbucks where some employees sued thecompany for failing to honor the regulations offered in the FLSA. Thecompany resolved the issue by paying the employees their dues andclassifying them as non-exempt to the FLSA. This was essential inensuring that the reputation of the company was protected and itcontinued to attract the best employees in the market (Kearns et al.,2012). It is clear that there is a problem in this case which thecounsel and the management have to resolve. It is paramount for thecounsel to keenly analyze the roles of the managers and decidewhether the managers are exempt from the FLSA. However, from theanalysis of the case, it is evident that the managers are non-exemptand are therefore entitled to the various benefits offered in theFLSA. It is essential for the management of the company to look atthe reputation of the company and settle the dispute before itescalates to the court case. A court case would definitely damage thereputation of the company.
In conclusion, it crucial to state that the case has presented aperfect example of numerous cases that happens in many companies.Many employees are classified as exempt to the FLSA whereas they areall non-exempt. This denies the employees their right to overtime payand other benefits (In Johnson & Cammarano, 2014). The manager isclearly being overworked and underpaid. He works for 55 hours a weekwhereas he is paid for only 40 hours. The roles of a manager musthave been clearly stated and therefore some of the duties he performsare termed as overwork. It is essential for the company to providethe manager with a clear contract where his roles and remuneration iswell stated.
In Johnson, V. A., & In Cammarano, G. E. (2014). NorthCarolina workers` compensation law: A practical guideto success at every stage of a claim.
Kearns, E. C., Gallagher, M., & American Bar Association.(2012). The Fair Labor Standards Act.Washington, DC: Bureau of National Affairs.
Weir, R. E. (2013). Workers in America: A historicalencyclopedia. Santa Barbara, Calif: ABC- CLIO.