1. Is this company running afoul of the Fair Labor Standards Act (FLSA)? Refer back to the discussion earlier in this chapter. Would this company be able to document that the store managers are exempt from the FLSA (not to mention similar state laws)? Also, what would it cost to re-classify your store managers as non-exempt?
2. If managers feel overworked and underpaid, what do you project that they will do when the economy picks back up? Is that a concern for the company? Is the company in compliance with the FLSA?
3. What would it cost to have a lawsuit filed against the company? Have other companies in your industry (e.g., Starbucks, Caribou, Peet’s, etc.) had any FLSA issues? If so, what can you learn from their experiences? Would you advise meeting with corporate counsel? What facts and observations would you recommend be presented at such a meeting?