Albertson’s, the grocery retailer, has the highest profit margins in the industry at 6%. A union has filed suit against Albertson’s for its “off-the-clock” without pay practices with respect to manager trainees. These trainees worked 4-5 hours extra each week without pay and did not complain because of promises of progression in the organization. When progression did not materialize, the trainees returned to checking positions and their union filed a class action suit on their behalf. The potential for back pay and penalties in the case is $200 million.
Albertson’s notes that some managers may prod trainees to work longer without pay but that such is not company policy.
Anwser these question
a. Who is responsible for the “off-the-clock” policy?
b. Is it each store manager or Albertson’s?
c. Is “off-the-clock” an ethical policy?