Question

In: Operations Management

Susan works in the dining services department at the same hospital. She is a cashier that...

Susan works in the dining services department at the same hospital. She is a cashier that has her own private check-out lane and register. She is paid $15/hour for this job. Her hours are not consistent because the workload varies based on how busy the hospital is that week.

  1. On her third week of work, Susan is scheduled to work a 5-hour shift. During her first hour of work, the manager approaches her and advises her there was a mistake when he did the schedule. Because of this mistake, they are overstaffed, and he advises her to go home and come back for tomorrow’s shift. According to the Employment Standards Act, how much will Susan be paid for that day?
  2. At the end of one of her shifts, Susan notices that her cash drawer is short by $10. Her Manager tells her they will withhold the $10 from her next paycheque for this shortage. Is the employer allowed to do this to Susan? Please discuss this in detail.  
  3. Susan, and others, have a tipping bucket sitting next to their registers. Management allows the tip buckets to be there but advises that any tips that are put into the buckets are to be shared amongst all employees working that day (food preparers, cashiers, cleaning staff, etc.). As such, the Manager empties the buckets at the end of every shift and does not give Susan the money until payday. Susan really needs the extra cash for the bus fare to get home and thinks it is unfair that she must share her tips and not get them right away. Is it legal for the management to force her to share her tips? Are they allowed to collect the tips at the end of the shift? Please explain these and other issues that come up in the Employment Standards Act regarding employee tip

Solutions

Expert Solution

1. According to the Employment Standard Act, Susan should be paid $75 for that day since she is scheduled to work a 5-hour shift and is paid $15/hour for this job. Since Susan is already scheduled for a 5-hour shift, hence the manager cannot ask her to go back once her schedule has been made. Do she must be paid $75 for her entire work schedule that day as per the Employment Standard Act.

2. The manager is not allowed to withhold the $10 from Susan's next paycheque for the shortage of her cash drawer by $10. This is because it is not yet proven that Susan stole money due to which $10 were short from the cash drawer. In the absence of proper enquiry and finding the real culprit, it is unfair to withhold the $10 from her next paycheque for this shortage.

3. It is not legal for the management to force Susan to share her tips and they are not allowed to collect the tips at the end of the shift because the tips provided by the customers are for the services provided by the staff to them and hence the tips belong to the staff person who has provided service to the particular customers. Hence it is illegal to ask the employee share his/her tips amongst all employees working that day and also to not give employees the money until payday.


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