Compensation and the Fair Labor Standards Act

Running head: COMPENSATION
COMPENSATION
Name of the University:
Name of the Student:
Author Note:

COMPENSATION1
Pg. 629
The hypothetical company, where I am working right now, is not abided by the rules
of the Fair Labor Standards Act, (FLSA). It is seen that the company is not paying for the
overtime that I am working for. According to the FLS Act, which is a federal law as per the
American Constitution, states, that a company must practice a sufficient and proper pay
system for the overtime done by its employees. The FLS Act also establishes a minimum
wage that has to be paid by the organizations, for all the sectors (Kearns, Kaufmann, &
McClelland, 2015). It also states that every organization must practice a record keeping
system for the job roles of the employees and the amount of work that is done by the workers.
The act also establishes clear statements upon the child labour standards considering the full-
timer and the part-time work done by them in both the federal, state and local governments.
Now, since the company has no payment structure for the overtime done by the
employees; therefore, it can be stated that the company has little or no knowledge of the FLS
Act. It can also mean that the company is not playing by the rules or the guidelines given in
the FLS Act. The company is asking the store manager to work for a straight 55 hours, as the
person is a store manager, but the company is not acknowledging the efforts of the manager.
The company will not be able to document that the store managers are exempted from the
FLS Act because the store managers of the company are directly asked to work for 55 hours a
week. However, they are not paid for the same. The employees or the store managers of the
company are underpaid. Further, if the employees are asked whether they are underpaid or
whether they are doing overtimes without payment or any acknowledgment, then it will be
difficult for the company to account for their work structure. They can be nonexempted from
the FLS Act.

COMPENSATION2
The store managers can be reclassified as nonexempt, and to do that review of the
exempt employees’ classifications have to be made. It will provide an understanding of the
changes, if any, in the employment processes of the organization. Further, the change process
should be communicated across the organization properly. The questions of the employees
or, as per the current situation, the subjects of doubts and the problems of the store managers
must be adequately communicated. Thus, upon reviewing the whole employment process,
and meeting the requirements, the store managers can be regarded as nonexempt.
The workers of the company feel that they are underpaid, as it is much-evidenced
form the case study. It can be due to the revenue system of the company, as the company may
face some problems regarding revenue generation. However, once the company picks up with
its revenue system, the employees of the organization must go and negotiate with the
payment structure. The store managers of the company must go up to the senior managers or
the hiring or the administrative committee of the company and should negotiate upon the
payment structure. They should have a straight conversation with the executive department to
ensure a proper payment structure along with the payment for the overtime that they are
serving.
However, there is a strong chance that they can be dismissed from their position.
Therefore, to make their claim secure and to ensure that the administrative department cannot
avoid their demands, they must make their position in the company, safe. They must make
themselves indispensable for the company, and only then their grants can be addressed.
This, is indeed a concern for the company, as there is a situation of intolerance and
unrest within the organization. If the organization continues with this practice, then it is likely
to get a position of facing a lawsuit as the employees of the organization can press charges
against the company. The company will further suffer an economic loss and also the