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Chapter_14_Part_One_to_page_546 - 1 What is the FLSA and...

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1.) What is the FLSA and what does it seek to do? You decide to buy a defunct business on the Sonoma coast. It consists of a small inn with an attached restaurant and a detached building previously used as a sundries store. You hire a general manager for the entire property. The sundries shop is leased to Sam who runs it as such. The restaurant space is leased to Mary who operates it as a breakfast only establishment, closing at noon. Mary asks if she can roll any call to her restaurant over to the hotel during its off hours and you agree. Aside from this, the restaurant operates independently, benefitting, however, from its location as part of the hotel building. Sam asks you to distribute flyers in the guest rooms as part of his advertising campaign. You agree. The two of you also agree to include the fact that there is a sundries shop near the hotel in both entities’ advertisements in the Yellow Pages. Because it saves money, your general manager does an initial screening of all potential applicants for all three businesses. Each entity pays its own bills for utilities, licensing, insurance, etc. 2.) Assume the hotel earns $750,000, the restaurant earns $198,000 and the shop earns $50,000. Sam pays his starting employees $5.05/hr., Mary pays her non- server positions $6.75/hr and you generously pay your starting staff employees $16/hr. Under the FLSA can any of the three employee groups make a viable legal claim for increased wages? If so, what facts support those claims and what is the owners’ best defense? 3.) Does your answer to #2 change if some of Sam’s employees are under 19 and in their 6 th month of employment? 4.) One of Mary’s employees is reluctant to hire an attorney to pursue a claim. She also doesn’t think she’ll really get anything out of it. How would you counsel her on these concerns? 5.) Explain the concept of “overtime pay” under the FLSA. Joe owns a small inn. There are three front desk shifts. He hires one person for the night shift, two for the afternoon/evening shift and one for the morning shift. Ann works the morning shift. Joe makes the weekly schedules and conducts initial training. After that, Ann is responsible for being available to make changes in the schedule and perform any follow up training. Joe designates her “Font Desk Manager.” She wears a nametag as such. Because she is management, she is not required to use the time clock to punch in and out like all the others. Instead, she is paid a fixed $750 weekly salary. Ann also sits in on the final interview for new employees and provides Joe with her impressions. She writes up employees for being late, etc. and relays that information to Joe. It then becomes part of any firing decision.
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Chapter_14_Part_One_to_page_546 - 1 What is the FLSA and...

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