Exempt or Nonexempt?

Joe Bellwoar (0467)

Learning Exercise 2: Exempt or Nonexempt

September 3, 2015

1.Why did Amy classify the shift leaders as exempt? Are there any advantages to Jones Department Store to having the shift leaders classified as exempt?

Amy classified the shift leaders as exempt by claiming that shift leaders are apart of the management team in the company and managers are exempt under the FLSA. Amy’s reasoning for shift leaders being apart of the management team is that they can weigh in on management decisions and perform some of the same duties that the associate managers do for the company. An advantage of Jones Department Store classifying shift leaders as exempt is that they do not have to pay any extra money on overtime for all of the shift leaders who work extra hours for the company.

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

I believe that the shift leaders should be classified as nonexempt under the FLSA. No matter how many manager like decisions that Jones Department Store allows its shift leaders to make, I do not think it is fair to consider them exempt under the FLSA. I feel this way due to the article stating that associate managers get paid a marginally larger amount than shift leaders. If the company is going to consider the shift leaders to be apart of the manager team, they need to be willing to pay them a just salary. On the other hand, I could also see if they wanted to not consider them management in which case the shift leaders would receive overtime pay for the extra hours they put in each week. I do not feel that it is fair to let the shift leaders work all those extra hours and classify them as managers, exempt from overtime under the FLSA, if they are not getting paid near what the other managers are being paid.

3. What are some factors that Amy should consider when determining if shift leaders are exempt or nonexempt?

Amy should consider several different factors when...