Exempt vs. Non-Exempt

11/11/2013

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Answer questions for Case Study on Page 49-50, Exempt vs. Non-Exempt.

Why did Amy classify the shift leaders as exempt?

Amy classified the shit leaders as exempt, because she considered them to be a part of the management team. When you are a part of the management team you have duties such as, run the floor, sets the schedules, and shift leaders put employees in various work positions as they see fit. Also being part of this management team the shift leaders get paid more than an associate, but less than an assistant manager. In any case because shift leaders are considered management they are exempt.

Are there any advantages to Jones Department Store to having the shift leaders classified as exempt?

I would have to say there are advantages to Jones Department Store making their shift leaders as exempt. I feel those advantages are as simply as money. While yes they are paying this employee more, but they can get them to work longer without having to pay them overtime. Perhaps paying a salary it is thought you can bring in more skilled workers, and you workers may feel more secure in their job and better respected. But I think really when it comes down to the business end of it, dollars.

Do you think that the shift leaders are properly classified as exempt? Why or why not?

In this case yes, I think that shift leaders are properly classified as exempt. I only assume they are compensated over or at least the guidelines set by the FLSA. The guidelines from the FLSA are:

“To qualify for exemption, employees generally must be paid at not less than $455 per week on a salary basis.” (http://www.dol.gov).

That works out to be about $11.00 an hour which I would guess is far more significant than the average hourly employee. Another reason why I feel they are properly classified, because they also have extra responsibilities that not just any employees have. For example Federal guidelines tell us to be exempt you must be...