Problem
Part I
Situation: A disaster recovery business responds to calls from [potential] clients who have had a "disaster" damage their home - for example, a pipe burst and caused a flood, or the cat knocked over a halogen lamp causing fire damage in the living room, or a hurricane has broken a window and damaged a room. The business has picked up and this small, 2-person company decides to hire a new employee.
This new employee named Dale will staff an office from 9-5 M-F and take calls 24/7 from people who have had a disaster. The new employee Dale will keep track of invoices, billing, payments, etc. Dale would need to carry a mobile phone and answer calls that could arise 24 hours a day / 7 days a week.
Your boss Sydney, know you've taken an employment law course and ask you for help.
Draft a memo to your boss Sydney setting forth the legal responsibilities (if any) towards this person.
i. Discuss in detail, in relation to both federal and a specific state law, if the company has to pay the new employee by the hour for each hour they carry the mobile phone?
ii. What does being "on call 24/7" really mean?
iii. What can or cannot the new employee do while on call 24/7?
Part II
i. Discuss what is important for HR professionals to know about the Fair Labor Standards Act (FLSA).
ii. There is much discussion about the federal minimum wage which is currently at $7.25 per hour (effective July 24, 2009). Many states also have minimum wage laws. What would you consider is a fair minimum wage and what is your rationale from an HR perspective?
iii. Discuss the differences between exempt and non-exempt employee? How does overtime compensation impact this designation?