Question Set One:
- Issues identified in the fact pattern:
Since it has been asked in the case, we need to analyze the case keeping our considerations in relation to the Equal Pay Act (BusinessDictionary.com). The issues that can be narrowed down are as follows:
- The basic remuneration of Jenna is high ($400 per hour) and John is low ($300 per hour).
- In the category where for all hours worked in excess of 2,000 in a year, associates are eligible for a bonus equal to 25% of all revenues generated by such work, Jenna earned her a $50,000 production bonus and John earned no production hour’s bonus.
- In the category where associates are eligible for a bonus for all work originated equal to 25% of all revenues generated, John originated $2,000,000 of business, which earned him a $500,000 bonus whereas Jenna was left behind by more than half John’s earnings in this category.
- Rule or Test used to analyze such issues:
The basic rule that we see in this case is that of Equal Pay Act. Other considerations or tests that can be performed in relation to the case are related to:
- Opposite-Sex Comparators:
There are various factors of work environment that may differ according to genders. These factors need to be considered when determining what the unbiased pay system can be. The rules related to such various factors can also be a determining factor.
- Comparison of Work:
The comparison of work rule says that the works performed by different sexes should be compared on a suitable platform. They cannot be compared on bases, which are not applicable to either of the sexes.
- Court's likely Application or Analysis of the most important facts to the rule:
The Court is going to follow the latest Equal Pay Act in order to assess the important facts of the case. The likely application of the Court can be summarized as:
- The basic pay is based on the extra qualification that Jenna holds and not based on gender discrimination.
- When we compare the bonus, no discrimination is found on the basis of work hours. The one who works more is given higher pay, not biasing the gender.
- When we compare the production bonus also, no discrimination is found on the associate building ability as well. The one who is more outgoing in nature and indulged more socially, which is John in this case, gets the higher pay, regardless of the gender.
Question Set Two
- Analysis of SNPP's classification of Smithers as an exempt employee under the FLSA
As per the provisions of FLSA, exempt employees are those, who are not entitled to overtime pay (McKay, Dawn). However, if we analyze this definition from the Vantage of fairness, though Smithers is an exempt employee, he has been working from 7 am to 7 pm. This accounts for overtime pay or at least some consideration in the form of exclusion of cutting the salary (Peltonlaw.com).
There are certain requirements that are delineated in the regulations of FLSA that is publicly announced by the United States Department of Labor (Flsa.com). For an employee to be considered as exempt, s/he must pass all the three tests mentioned below.
Let us analyze Smithers’ position in terms of the three tests:
- Test of salary level: As per FLSA, the employees who receive annual salary less than $23,600 or the weekly salary of $455 are considered as nonexempt. On the other hand, those employees whose annual earnings exceeds $100,000 are categorized as exempt.
Smither earns only $400 per week. So, he should actually be classified as a non-exempt employee.
- Salary basis test: As per the FLSA, “In a salary basis pay, there is a very few or no chance that the base salary or pay of an employee is not deducted in the case if an employee has no work to do or complete. In the other situation of fractional day absenteeism, the salary of an employee is still not reduced. If the employee has sick leave plans executed, faced the disciplinary actions and suspensions, taken leave for personal purpose or in the case of whole day increments, then the chance of docking the base salary by an employer is very high.
However, in the given case, Mr. Burns docks Smithers $100 for each absence and $50 each time Smithers is late for work. He is also required to sign a written authorization before deducting any amounts from his salary.
- The Duties test: As per the provisions of FLSA, all the employees who pass the test of salary level including the salary basic test are exempt under the condition that they do the job duties of exempt nature. The law has made three categorical differentiation of exempt job, which are listed as executive type, professional type and the administrative type.
Smither’s work area and the activities he performs during and beyond office-hours exclude him from the category of an exempt employee.
- Analysis of whether SNPP engaged in any activity that placed the exemption at risk under the FLSA, assuming Smithers were properly classified as an exempt salaried employee.
There are a number of activities that the organization, more specifically, Mr. Burns has ordered Smithers to perform, which puts his position as an exempt employee at stake. The activities can be summarized as:
- Smither is paid only $400 per week, when he should be paid $450 as he has been declared an exempt employee.
- Smither is made to perform such activities that are beyond his scope of work. He is not paid additionally for the extra services he provides. Despite his efforts, he is docked for minor services, which should not have been charged against his basic pay.
Question Set Three:
- Identification of compensable time Dwight worked on a weekly basis:
Compensable time is whole of the time an employer requires an employee to be at work. It is irrespective of whether the employee is officially "on the clock" or not. This may include the driving time in the owner’s truck from worksite to worksite during the work time in the day. It may also include the time driving from the store to the work site at the commencement of the day and recurring to the store at the end of the day, if the employer requires the same (Dllr.state.md.us).
The compensable time Dwight worked on a weekly basis:
Office time of 8:30 pm to 5 pm
- hours on Client service on Monday
0.5 hours for customer calls:
1 hour per day overtime * 4 days:
2-hour overtime on Thursday
Total Compensable time: 5 hours per week.
- Calculation of regular rate of pay applicable to Dwight in the average week:
Our assumption is that Dwight does not qualify for the outside sales exemption. This means that he is entitled to overtime bonus. In order to calculate the regular rate of pay applicable to Dwight, we need to see the activities that fall under regular activities and thus calculate the costs.
The regular rate is calculated by totaling together the employee’s pay for the workweek. It also includes all other income and dividing the total amount by the hours of the week, the employee worked.
The regular rate of pay applicable to Dwight is calculated as:
$800 per week + $20*5 hrs. per week
= $800+ $100
= $900 per week.
References
BusinessDictionary.com,. 'What Is Equal Pay Act Of 1963? Definition And Meaning'. N.p., 2014. Web. 21 Oct. 2014.
Dllr.state.md.us,. 'Compensable Time: For What Time Must An Employee Be Paid? - The Maryland Guide To Wage Payment And Employment Standards - Employment Standards'. N.p., 2014. Web. 21 Oct. 2014.
Flsa.com,. 'Fair Labor Standards Act (FLSA) Coverage (Exempt Vs. Non-Exempt -- The Online Wages, Hours And Overtime Pay Resource'. N.p., 2014. Web. 21 Oct. 2014.
McKay, Dawn. 'What Is An Exempt Employee?'. About. N.p., 2014. Web. 21 Oct. 2014.
Peltonlaw.com,. 'Minimum Wage & Overtime Law | Pelton & Associates, PC'. N.p., 2014. Web. 21 Oct. 2014.
