Overtime for Managers!?the Ethical Dilemma*

In: Business and Management

Submitted By waelhussein
Words 1144
Pages 5
In the last decade the relationship between employers and employees has witnessed many overtime disputes which consumed considerable amounts of human and financial resources. Due to this, labour legislations should be taken into consideration when developing and implementing HR overtime policies and procedures to have a solid case for any anticipated challenge in the judicial system.

Getting promoted to a managerial position is a common desire for many employees, yet employers will be more generous in giving managerial titles if they can save money by exempting the managers from overtime pay. So are all managers holders exempt from overtime pay? To answer this question there are three main elements that should be examined to provide a general guideline. First, do the primary duties of the position include direct control and authority over human and/or financial resource? Second, are there subordinate employees have less managerial experience/ responsibility than their manager? Third, are the salaries of managers not subject to deductions regarding their attendance or for being late? Do the managers not have to punch in and out? If the answer to all these questions is yes, then this is an indication that the holder of a managerial title is exempt from overtime pay.

Another important factor is the compensation method for compensating the manager which could indicate the managerial duties. If a manager is paid on an hourly basis, this is an indication that the manager is not exempt from overtime, because his hourly wage is determined on a flat-rate pay system. If the manager’s salary is determined by their output as a percentage of outside sales revenue, which is directly generated by their direct efforts or their teams’ efforts, this is an indication that the manager is exempt from overtime pay. Is the manager being paid for the knowledge they obtained through…...

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