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Compensation Key Factors

The Wages and the Fair Labor Standards Act (FSLA) is established under the United States Department of Labor to provide oversight on remuneration and employment standards. The act establishes guidelines on employer-employee relationships. In particular, the act guides the employer-employee relationship in the areas of fair remuneration, employment standards, and recordkeeping. The act guides the employer-employee relationship in both the private and public sectors, helping achieve fairness on both parties in an employment relationship. The following details the requirements of the FLSA act in relation to the assistant manager store position.

FLSA provides guidance on the minimum wage recommendation provided by the federal government. According to the U.S. Department of Labor (n.d), the minimum remuneration rate outlined by the federal government is $ 7.25 per hour. The minimum wage rate came into effect in 2009. However, various states have also established their minimum wage rates. The employer is thus subject to both state and federal wage laws. In a situation where the state minimum wage is higher than the federal wage, the employee should receive the state-outline minimum wage. As per the minimum wage requirements established by the federal government, the StopNShopToday, Inc. is currently paying below the minimum requirement. This includes the position of an assistant manager and the cashier. The retail corporation pays an assistant manager an average of $ 60 per day which is below the minimum wage requirement, considering they work an average of 50 to 60 hours a week.

FLSA also outlines details concerning overtime pay. Employees are supposed to receive compensation for extra hours worked during the week. The federal maximum number of hours that employees should work is 40 hours per week. Beyond this, employees are supposed to receive overtime pay per the extra hours worked. According to the U.S. Department of Labor (n.d), employees are supposed to receive an extra pay of one and one-half times the amount they receive during their regular pay. However, this does not include the normal work done during weekends or public holidays. Assistant managers at the corporation do not receive overtime pay, yet they work for between 50 to 60 hours in a week. As such, the assistant managers are entitled to overtime pay.

Other provisions outlined by the act include hours worked, child labor and recordkeeping. The hours worked represent the total number of hours an employee is expected to provide services. The child labor provision guides against the employment of minors. The corporation is not supposed to employ minors especially in situations where their health may be at risk.

The recordkeeping provision requires employers to keep accurate records regarding the amount of hours worked and the payment details. This provision also requires employers to ensure that employees are aware of the provisions of the FLSA, by displaying the requirements in the place of work (“U.S. Department of Labor,” n.d). StopNShopToday Inc. Corporation the management seems to have overlooked this important provision. If the employees were aware of it, they would definitely ask for a higher pay and overtime pay.

It is recommended that the corporation review the remuneration rates for assistant managers and cashiers as well as the overtime pay. Currently, the corporation remunerates its employees less than the minimum wage requirements outlined by FLSA. The corporation should also provide overtime pay to assistant managers since they mostly work for more than the stipulated number of hours per week. Lastly, the corporation should ensure that employees are aware of FLSA requirements regarding the employer—employee relationship.

 

Reference

U.S. Department of Labor. (n.d). Wage and Hour Division (WHD). Retrieved from:             http://www.dol.gov/whd/flsa/

 

 

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