Chapter 20, Problem 1RE

Summary Introduction

Case summary:A person RS is working as a traveling salesperson for a person AW. The sales of RS constituted ninety-percent of RS work time. The person RS works 50 hours per week but was not paid for the extra hours. The new supervisor CB has claimed that the person RS has been inflating the sales call which is reported and should submit to a polygraph test. The person RS submitted a letter from his wife’s physician to the person AW which stated that she is ill and is in need of daily care. RS is taking leave of several months to take care of his wife. The person AW has sixty-three employees at the time. The person RS was terminated from his position as the position was merged with the adjacent territory.

To find: The legal right to receive payment for overtime work.

Explanation of Solution

The Fair Labor Standards Act (FLSA) makes it mandatory for the employer to provide over-time pay to those employees who happen to work over forty hours in a week. The over-time pay is 1.5 times his or her regular pay. In the above case, the person RS was giving ninety-percent of the work time to sales of AW who is an outside salesperson. FLSA states that administrative, executive, and professional employees along with outside salespeople are exempted from FLSA’s overtime provision. Executive and administrative employees are those who exercise discretion and have independent judgment. The person RS is an administrative employee who will be relieved from FLSA's overtime provisions.