IO Psych Emp Selection - Legal Compliance Discussion notes.docx

IO Psych Emp Selection - Legal Compliance Discussion notes.docx

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Assignment 1: Discussion—Legal Compliance The Fair Labor Standards Act of 1938 (FLSA)—also called the Wages and Hours Bill—is a federal law protecting the employee’s right to compensation for work performed. It established the national minimum wage, guaranteed overtime, and prohibited the employment of minors. While organizations are expected to abide by the FLSA, in many cases, the definition of what constitutes an exempt versus nonexempt employee is questionable or open to interpretation. This can and does have serious consequences for the employer when employees are found to have been misclassified. Use the textbook, the Argosy University online library resources, and the Internet to research the provisions of FLSA and related cases. Select an example of a company that mislabeled a nonexempt employee as exempt or mislabeled an exempt employee as nonexempt. Write an analysis including the following: Summarize the example you selected, including a description of the issue and an exploration of its cause. Explain the implications of mislabeling for both the employee and the organization. Cite your sources. Focus on clearly explaining your case study and thinking critically about how the employee(s) were impacted as well as the organization. Use references to support your points.
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In 1996, a group of claims representatives who formerly or currently worked for Farmer's Insurance Exchange (FIE) brought a class action suit on FIE.
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