Question

In: Operations Management

Beth, a newlywed, just graduated from university as a Registered Nurse. She was just hired by...

Beth, a newlywed, just graduated from university as a Registered Nurse. She was just hired by a large hospital in Toronto that employs over 500 workers. She is hired at a rate of $40 per hour and has a probationary period of one-year. When she was hired, her employment offer was to get a minimum of 32 hours per week, but depending on the hospitals needs, may be up to 60 hours per week. Because of COVID-19, the hospital demands are high.

Beth's hours for this week were:

Monday: 12 hours

Tuesday: 9 hours

Wednesday: 12 hours

Thursday: 10 hours

Friday: Off

Saturday: 10 hours

  1. What will be her pay for this week (assume no averaging agreement and breaks are paid)? Show your calculations.
  2. Is it legal for the hospital to require her to work these many hours in a week? Explain your answer in detail.
  3. Do you think the hospital may want to enter into an averaging agreement? Please discuss what it is, the advantages to the hospital, the advantages to Beth, and should she agree to it.

Solutions

Expert Solution

ANS 1. TOTAL WORKING HOURS = 12+9+12+10+10= 53

PAY PER HOUR= $ 40

PAY OF THIS WEEK = 53 X 40= $2120

ANS 2. YES, IT IS LEAGL FOR THE HOSPITAL TO REQUIRE HER TO WORK THSES MANY HOURS A WEEK BECAUSE IT WAS MENTIONED IN HER EMPLOYMENT CONTRACT THAT THE HOURS CAN BE INCREASED TO 60 HOURS PER WEEK IF REQUIRED. SO THIS WEEK THE HOURS WERE 53 WHICH WERE WITHIN THE LIMIT OF 60 HOURS. AND THIS CONTRACT IS ACCEPTED AND SIGNED BY BETH. THEREFORE IT IS LEGAL.

ANS 3. AVERAGING AGREEMENT: IT IS AN AGREEMENT WHEREIN THE EMPLOYER AND THE EMPLOYEE AGREE TO AVERAGE THE WORKING HOURS TO ONE, TWO OR THREE WEEKS AND ALSO TO ELIMINATE THE PAY OF OVERTIME WORK HOURS OR THE HOURS DECIDED IN THE CONTRACT.

ADVANTAGES TO HOSPITAL: HOSPITALS NEED NOT TO PAY EXTRA FOR OVERTIME. ALSO, THEY WILL AVERAGE THE HOURS WHICH WILL BE LESS THAN THE HOURS CONTACTED FOR, THEREFORE THEY WILL HAVE TO PAY LESS. SO, THEY WILL BENEFIT FROM THIS TYPE OF AGREEMENT.

ADVANTAGES TO BETH: IF ANY MONTH THE HOURS WORKED ARE LESS THAN THE CONTRACTED, THEN SHE WILL BE BENEFITTED FROM THE AVERAGE AGREEMENT BECAUSE IN THAT WAY SHE WILL BE PAID MORE.

SHE SHOULD NOT AGREE TO IT NOW BECAUSE THE DEMAND IS HIGH THESE DAYS, SO SHE WILL BE IN A LOSS IF HER WORKING HOURS ARE AVERAGED.


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