The following letter was addressed to the Human Resources Department by Ms. Donna Hayes, a manager of Cafe Espresso.
Dear HR specialist:
I work as a “Store Manager” at Store #25. I am a college graduate with a degree in Hospitality Management from the University of Central Florida. It is my understand- ing that this position is classified as “exempt” and that this classification applies to all store managers who work at Cafe Espresso.
Although I did not know this at the time I was hired, my primary duties at Cafe Espresso have been performing the same job duties as the baristas who report to me. Most of my time is spent servicing customers in some manner or maintaining the cleanliness of the store. I had conversations with two other store managers for Espresso who told me they had similar job duties. My weekly salary is $755.00, and according to my log, I’ve been averaging sixty (60) hours of work per week for almost two years now. I do spend part of my work week directing my baristas who work at the store. I also conduct job interviews of applicants, conduct performance appraisals and make recommendations to the District Manager regarding the hiring, firing and rewarding my baristas. However, given that most of my work week is spent doing essentially the same thing as the baristas, I’m wondering whether I am actually entitled to overtime like the baristas are. I would appreciate your response to this inquiry.
As the HR specialist, take a position on the inquiry and draft a memo for the HR Director. Since you are the compensation specialist and you are not sure how much the HR Director knows about the Fair Labor Standards Act, be sure
to include all critical questions that need to be answered by HR prior to responding to Ms. Hayes and taking a position on her inquiry. In preparing your letter, refer to the discussion of the FLSA in Chapter 10. You may also consult the
website of the U.S. Department of Labor at: http:/www .dol.gov/whd/regs/compliance/fairpay/main.htm. With the information gathered from the above resources, make recommendations to your HR Director regarding Ms. Hayes’ inquiry and also the exempt status for other store manager positions as well. Take a position as to whether you believe Cafe Espresso is (or is not) in compliance with the FLSA. Be as precise as possible in your position and state what (if any) additional information may be necessary in order for you to take a definitive position.