Question

1. ABC Corporation is a private sector manufacturing company that employs 450 assembly line workers. You are the HR assistant to the HR director. The director has compiled and given you the following proposed policies to review.
   1. ABC Overtime Proposed Policy 1: Assembly line workers are salaried employees. As a result, under federal and state wage and hour laws, they are not eligible for overtime pay and will not be compensated beyond their weekly salary amount for working over 40 hours per week.
   2. ABC Overtime Proposed Policy 2: Assembly line workers shall receive comp time in the amount of 1.5 times any hours worked over 40 in a given work week. Comp time hours must be used within 6 months from the end of the week for which they were earned. Comp time hours not used within this period become invalid.
   3. ABC Overtime Proposed Policy 3: Assembly line workers are paid solely based on production. As a result, assembly line workers are not eligible for overtime pay.
   4. ABC Overtime Proposed Policy 4: Assembly line workers shall be compensated at the rate of 1.5 times their hourly rate for all hours over 40 worked in a given week.

Select the best Proposed Policy. Support your choice based on the applicable laws. Then, give legal reasons for rejecting all other Proposed Policies, setting forth each word, phrase or sentence which is a potential violation of the FLSA and the provision(s) that it violates.

Answer 1

ABC Overtime Proposed Policy 4 is the most appropriate and best policy for the given case. The reason being, employers have legally bound to pay employees 1.5 times their salary for overtime, I e. Working beyond 40hrs in a week. Thus, this policy will help the employer achieve it's production target, while adhering to the norms and regulations set by the government.

Reason for rejecting the remaining proposed policies:.

ABC Overtime Proposed Policy 1: as the employees are salaried, the employer has to provide overtime of 1.5 times their regular wages for the number of hours worked beyond 40hours a week.

ABC Overtime Proposed Policy 2: compensation time is prohibited under federal law as the employer escapes the payment of overtime pay to the employee which has been stated by FLSA

ABC Overtime Proposed Policy 3: the workers on the production line are employees of the company. They have to be provided salaries. However, their incentives may be based on performance.