Express Delivery Systems, Inc. is a worldwide package delivery company that spec
ID: 459651 • Letter: E
Question
Express Delivery Systems, Inc. is a worldwide package delivery company that specializes in fulfilling "just in time" parts and supplies to manufacturers. It provides both "overnight" and "express" deliveries, express referring to the fastest road-based delivery available 24/7. Express Delivery Systems (EDS) drivers and sorters work in 3 overlapping 8-hour shifts, M-F, so that the necessary personnel are always available to make a shipment. Therefore, some employees work 7:00 AM to 3:30 PM (with a half-hour lunch break), some work 10:00 AM-6:30 PM, some work 11:00 PM-7:30 AM, and so on. There are also two part-time "weekend" shifts, with 12-hour days Saturday and Sunday. EDS pays its full-time employees based on a 40-hour work week, M-F. These employees can then earn "overtime" pay on weekends by filling in when needed if delivery demands require supplementing the part-time "weekend" crew. When full-timers work on the weekend, however, they agree to be "on call" in 4-hour increments. To do this, they "call in" their availability and the 4-hour "clock" begins. During that 4 hours, the employee must be reachable at all times via cell phone, and must be able to take a delivery immediately. The employee may not travel outside his or her "pick up zone" while on call, which limits mobility to approx. a 12-mile radius. If the employee gets a delivery request, he/she makes the delivery and is paid for both the "wait time" and the time taken to make the actual delivery. If the employee gets no call within the 4 hours, he/she is not paid, but can sign up for another 4-hour "on call" status at any time. No regular employee is ever required to be on call weekends; the company relies on "go getters" who want to make some OT on the weekend and are willing to be available for it. Dennis, a full-time M-F employee, agreed to go "on call" weekends many times last year, and spent a total of 600 "overtime" hours "on call," though he was only called and paid for deliveries for 150 hours. He insists that he is owed overtime pay for the remaining 450 hours. During school holiday periods, EDS also hires high school students (aged 14 and older) to assist in processing orders at its two national distribution centers. EDS does not allow the students to work more than 6 hours per day or more than 36 hours per week, and they may not work with the mechanical sorting equipment. The students are paid minimum wage, and the job is advertised as a "paid internship." The local high school complains that students who work at EDS over school holidays are returning exhausted, and that no one under age 16 should be permitted to work there. Renee, a scheduling manager for EDS, worked an average of 50 hours per week last year. She is paid a salary of $50,000 plus full benefits to manage the scheduling of sorters and drivers for incoming orders. She supervises a staff of 8 scheduling assistants, who each coordinate schedules within their geographic regions. She is actively involved in hiring, training and supervising these scheduling assistants, but does not have the sole power to hire or fire them. She is claiming overtime for the excess hours worked, and EDS is claiming she is part of "management" and is exempt from being paid overtime. What issues do you see raised by this scenario?Explanation / Answer
As the case suggests, Renee is only a scheduling manager for EDS. She is involved in all the activities like hiring, training and supervising. But she cannot hire and fire anybody on her own individual basis. She also does not have the say in recruiting employees. She cannot be considered as a part of the management. She can only be considered as a manager who executes the management's decisions.
The management in order to do away with the over time cost from being paid to Renee, puts in the argument that she is the management employee and over time money cannot be paid to her. The management's argument will not stand in the court of law. If Renee is going to be considered as a part of the management, she has to be given a share in the profit that EDS makes. She is not given anything of that sorts. She is only paid a salary on a monthly basis.
If Renee is a part of the union, she can put forward her claim to the management through the union. The management will have to consider Renee's part of the situation and will have to take a decision favorable to Renee. Even if the management is not obliging, Renee can file a suit in the court, regarding the same. and could have her over time money paid from the management.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.