Case Study Paper Example: Barista to Manager

Introduction

Labor relations is a significant system that helps to develop rules and regulations that govern the relationship between the employees and the employer. All entities whether public or private have the mandate to conform to this system. The system encompasses collective bargaining that incorporates the interests of both the employer and the employee while capturing the essential social values (Trebilcock, 2019). In the USA the Fair Labor Standards Act (FLSA) is a body that aims at maintaining desirable labor relations by setting rules and guidelines that dictate the minimum wage, the mode of determining the overtime pay, record keeping, and other vital factors that affect employees (United States Department of Labor, 2019). The rules apply in both the private and public sectors. Based on the stipulated requirements in the FLSA, the paper focuses on evaluating a case by assessing the key problems and developing a recommended solution strategy to address the problem.

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Key Issues in the Case

The key issue in the case study is the changing work status that occurs as a result of moving from a Barista to a manager position. It is evident that the working condition for this position does not conform to the HR principals. For example, the new responsibilities do not conform to the required duties and responsibilities therein. As a manager, one is expected to oversee the daily activities within the stress. However, it is seen that the manager performs duties that relate more to a Barista's position than a manager. HR is responsible for developing the job description of all the job positions in the organization (Smith, 2016). In this case, it is clear that the HR has not developed a clear job description making the manager perform tasks that do not relate to the position. The underlying issue is the inconsistent wage procedures. Despite working for 55 hours than the required 40 hours, the manager is not entitled to extra pay for the extra hours of work. This does create a good working environment considering the facts that other workers who work for extra hours are entire to extra pay for overtime. Based on these problems, it is, therefore, clears that the company does not operate in conformity to the FLSA and therefore may face considerable costs in a case where the manager files for a lawsuit. Furthermore, as an employee, one is entitled to a fair working environment that is a line to the set statutory rules and regulations.

Facts Affecting the Issues

The issues are based on the facts stipulated by the FLSA. As per the FLSA, nonexempt employees are entitled to overtime for the hour worked beyond 40 hours. This means that the basic pay covers only 40 hours and therefore, the manager should be paid extra pay for the extra 15 hours that they work for the company. Further, FLSA stipulates that the overtime pay rate should not be below one and half times the basic pay rate (United States Department of Labor, 2019). It is also clear that there are no limited hours for overtime and therefore it depends on the policies within the organization. In this case, the company breaches these rules rendering the working conditions unfavorable for the employees. Upon feeling that they are underpaid and overworked, the manager has the right to file a complaint to get help when such needs arise. Furthermore, the U.S. Department of Labor's Wage and Hour Division (WHD) has the mandate to help employees when faced with such problems at the workplace (United States Department of Labor, 2019).

Proposed Solution to the Problem

Based on the problems presented in the case, it is evident that the company does not follow the principal rules and guidelines as stipulated by the FLSA. As a result, the company places its employees to unfavorable working conditions making the company stand a chance to face lawsuit which may be detrimental to its image and operations activities. As a way to avoid further problems, it is recommended that the company redesigns the employment policies such that they accommodate the stipulated rules and guidelines. In this case, it means that HR should develop a clear job description that links the duties and responsibilities to the job position. This will ensure that the manager will not overwork by assuming duties and responsibilities supposed to be done by the barista. Similarly, the new employment policy should document and put the payment model in the limelight while considering the principal requirements of the FLSA. It means that the company needs to introduce the overtime pay for the hours beyond the standard time of 40 hours (United States Department of Labor, 2019). This will ensure that the manager does not feel underpaid and therefore would not file for a complaint regarding the situation. While managers do not fall under the no-exempt workers, the company should file the changes without only changing the terminologies from barista to the manager (Newman, Gerhart & Milkovich, 2014). Upon integrating these aspects, the company can prevent any tendency of facing a lawsuit that may end up harming the company to a greater extent.

Conclusion

From the above analysis, it is evident that maintaining good labor relations is very vital in enhancing the productivity of a given organization. Workers deserve a favorable working environment raging from the safety to the compensation package. Various bodies focus on protecting the rights of the workers by setting rules and guidelines that govern the relationship between employees and the employer. In this case, it is essential that each company conforms to the FLSA. It not only helps to protect employees but also helps in protecting the company from harm associated with the costs that come with lawsuits.

References

Newman, J., Gerhart, B., & Milkovich, G. (2014). Compensation (11th ed.). New York: The McGraw-Hill Companies.

Smith, A. (2016). HR's Role in Pay Analyses. Retrieved from https://www.shrm.org/hr-today/news/hr-magazine/0716/pages/hrs-role-in-pay-analyses.aspx

Trebilcock, A. (2019). Chapter 21 - Labour Resources and Human Resources Management. Retrieved from http://www.ilocis.org/documents/chpt21e.htm

United States Department of Labor. (2019). Compliance Assistance - Wages and the Fair Labor Standards Act (FLSA) - Wage and Hour Division (WHD). Retrieved from https://www.dol.gov/whd/flsa/