In the United States, as well as in many other countries, there is a specific regulation concerning working conditions and payment. As a rule, workers have to be paid hourly with no more than 40 hours 7 days per week. In case the number of working hours exceeds because of different reasons, a regular rate of payment should be changed in regard to the Fair Labor Standards Act (FLSA). In this paper, the case study “From Barista to Manager” will be discussed from the point of view of a manager who has to work more because of a currently received promotion, but receives the same salary and from the point of view of a company that has to re-structure the organization in order not to break the law and meet the employees’ demands and needs.
Key and Underlying Issues of the Case
In the case under analysis, the main problem is connected with the necessity for an employee to work more and inability to get a high salary. One of the main thoughts in this case is that it is possible to work 55 hours if this kind of work is fairly paid (Gerhart, Milkovich, & Newman, 2014). However, when fair working conditions are discussed, it is necessary to remember about the FLSA and the government’s decision to stand up for employees who have to overwork and put their lives under risks by the inability to ask for fair work and payment and the necessity to demonstrate high rates of productivity (Dishman, 2015). In this case, an employee continues working as a manager, completing a number of duties which are not always similar to those of a manager, and receiving similar to the barista’s salary. The company does nothing to change the situation because, first, there is no complaint from the manager at the moment, and, second, no evident violations of the FLSA.
Decisions through the Case
The main problem in the situation under discussion is that no certain problem is identified, just individual concerns and dissatisfaction with a promotion. From the legal point of view, the company can be reclassified to non-exempt status with minimal losses and identify its exemption standards (Greene, 2015). Regarding an organizational perspective, the company should not document the exemption of the manager’s salary because all duties, working conditions, and responsibilities have to be mentioned in a contract and signed by both parties relying on their free will. Suits may be developed against the company, but neither baristas nor managers can achieve positive results in case they sign contracts with clear details being given there.
To be ready to ask for salary change or re-consider manager’s duties, a person should investigate the contract and identify if there are any drawbacks or unclear points. For example, in Starbucks, baristas may earn up to $25,000 per year with all those health coverage, adoption assistance, education, and training for free in case they are ready to work extra hours (Dishman, 2015). In other words, there are no documented obligations and explanations of when and why extra hours may be needed. Still, managers, as well as other employees of a company, are properly motivated and supported by their leaders. So that, no complaints or misunderstandings concerning overwork payment occur. Therefore, when the economy picks back up, the company can underline such compensation details and protect its position regarding the FLSA issues.
Solution to the Problem
Taking into consideration the conditions under which a manager has to work and the standards developed by the company, it is possible to advise a meeting with corporate counsel with the only intention – to clarify working conditions and salaries of employees in the company. The success of any organization depends on how well the relationships between employees and their leaders are developed. There is a chance for a company to leave manager’s salary as it is in case some compensation factors are identified (the example of Starbucks can be used as evidence). There is also a chance for a manager to demand a higher salary after all conditions and details are explained. The peculiar feature of a position of a manager is that a person may take responsibilities for a number of tasks at the same time. In case a company does not want to specify these tasks, but a manager is not satisfied with such working conditions, it is necessary to develop a new contract where limitations and clarifications are given.
Conclusion
In general, “From Barista to Manager” is a case study that helps to raise a number important organizational and management issues in modern companies. Overtime payment, effective motivation, and following the FSLA are the key and underlying issues of the case that can be solved through either reclassifying a company as non-exempt or direct communication between a manager and the company. This communication should be based on clear goals and responsibilities of both parties. Instead of asking to change salary or reduce the number of tasks, a manager should support a rapid growth of the company and think about some compensation that may be advantageous for them.
References
Dishman, L. (2015). New rules for overtime pay: Blessing or curse for business?Fast Company. Web.
Gerhart, B., Milkovich, G.T., & Newman, J.M. (2014). Compensation (11th ed.). New York, NY: McGraw-Hill.
Greene, S.S. (2015). Changes in overtime exemption standards. ABA Banking Journal, 107(1), 60. Web.