1. Jane works as a nurse for a hospital. Her normal work week is Monday through Sunday and she has an off-day on Wednesday. She is paid hourly and her hourly rate of wages is $22 per hour. She also gets a weekly bonus of $100 per week when she works. She can take short-breaks of 10 minutes or so for lunch, snacks, etc., whenever she is not attending to a patient. In a given week, her work schedule was as follows:
Monday - 6 AM to 12 Noon
Tuesday - 6 AM to 6 PM
Wednesday - Weekly Off
Thursday - 8 AM to 8 PM
Friday - 6 AM to 12 noon. She was also on call from 6 PM to 10 PM (on call). She need not come to work but must be available to come to work, if needed.
Saturday - 12 noon to 6 PM. From 6 PM to 10 PM she was to be on the premises of the hospital and can be called upon to assist others if needed.
Sunday - She was in a training program from 8 AM to 12 Noon to update her skills in nursing and required by the employer.
a. Determine if Jane is exempt or non-exempt under the FLSA.
b. For the week in question, determine how many hours she worked. Is she eligible for overtime pay? If so, for how many hours should the employer pay her overtime?
c. If she is eligible for overtime, calculate her overtime pay for the week. That is, how much will she be paid as base wages and how much overtime pay should she be paid?
2. A publicly traded company has the following 5 employees IN 2014 and their ownership and income are given below:
Employee Name Annual Salary Percentage of Ownership in the Firm Job Title
A $220,000 2 Chief Executive Officer
B $135,000 5 CFO
C $175,000 3 V.P. (Marketing)
D $128,000 5 V.P. (HR)
E $200,000 6 V.P. (Manufacturing)
The company also has 125 other employees such as production workers, secretaries, clerical employees, etc. The company contributes 8% towards retirement for these five employees and 3% towards retirement for the 125 employees.
a. Based on the above information, determine whether employees A through E or key employees or highly compensated employees. Explain your answer.
b. Based on your analysis, determine if the company’s retirement plan violates Internal Revenue Code for non-discrimination.
3. A manufacturing company manufactures ink cartridges. The company has about 250 employees. The company wants to introduce a group gainsharing plan and is contemplating between Scanlon Plan and Rucker Plan. One of the main ingredients of ink cartridge is polymer (Plastixx ST) which constitutes about 40% of the production cost. The following chart gives the price trend for about 14 to 15 months. The company has sought your opinion on whether to use Scanlon Plan or Rucker Plan. Which one would you recommend and why? Explain in detail.
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(a) If Jane is exempt or non-exempt under the FLSA
Jane is non-exempt under the FLSA because she is not salaried, but paid on an hourly basis. According to FLSA provisions, nurses paid an hourly rate should receive overtime pay for hours worked above he standard 40 hours in a given week. Additionally, even though her actual duties are not described, Jane does not qualify for exemption under Section 13(a) (1) of the FLSA because she is not a salaried employee. The fact that she has a predetermined wage rate of $22 per hour which is used to compute how much...
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