FLSA and Wow Fashion Case Study
Your paper must contain original thought, interpretation, and analysis. Use Microsoft Word, Double space, adhere to APA style and include a minimum of 3 sources. Your paper must be a minimum of 6 full pages in length (not including cover and references pages).
Drew started working at Wow Fashions, a trendy high-class retail store for young professionals, three years ago. Drew has worked hard, and the Regional Manager recognized those efforts and recently promoted Drew to store manager. Along with this new responsibility, the Regional Manager expects Drew to be at the store weekdays and weekends and to work 50-55 hours per week. The Regional Manager knows how important it is to be in front of the customers. Drew has worked extremely hard to get to this point and has watched many people leave the company, but Drew sees continued growth. The pay and benefits are good, and they even have tuition reimbursement, which will assist with Drew’s long-term goal of completing a graduate degree in fashion. Drew’s Regional Manager has emphasized that being in front of the customers assuring they are happy with the products and services of the store to keep sales up and have continuous profitability is very important. Since Drew’s promotion, the Regional Manager has stated he expects store managers to work more hours, but Drew will only be paid for 40 hours a week. No matter how many hours Drew works now, there is no overtime pay because it is expected of store managers. This is creating more of a problem since now Drew is expected to dress nicer and more often because of the increase in working hours. To add a bigger barrier, Drew cannot even afford the clothing in the store with the ten percent employee discount, but the manager would like to see Drew wearing the store fashions.
Drew is at the store more and more but doesn’t feel like a manager. Drew spends most of the time checking out customers, stocking shelves, lifting boxes, taking lots of inventory, cleaning the store, and even cleaning the restrooms. It seems more like the work Drew did while in customer service before becoming a manager but now there is much more of it to do, and there wasn’t an increase in pay for doing more of it. Drew feels like this just was not part of the original job promotion. Drew feels there have been minimal opportunities to interview potential employees and train new hires. Since there has been quite a bit of turnover at the location, the Regional Manager has been involved in every aspect of hiring, firing, and all employment decisions without including Drew in the process. The corporate office has clear policies and procedures on how to handle all store issues and provides training to store managers but the Regional Manager controls everything, and the corporate office is rarely notified.
- The Fair Labor Standards Act (FLSA) received a complaint about the Regional Manager of WOW Fashions overworking and underpaying Store Managers. How will an investigation be conducted if only one complaint was received? What steps can be taken?
- How would the FLSA view how the company is handling transitioning non-exempt employees to exempt employees?
- How should the company handle the Regional Manager?
- If other similar litigation has been filed, what has been the outcome?
- As an HR administrator, how would you prevent this from happening at your company/organization? Who should be at the table during planning discussion?
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