1. ABC Corporation is a private sector manufacturing company that employs 450 assembly line workers. You are the HR assistant to the HR director. The director has compiled and given you the following proposed policies to review.
2. ABC Overtime Proposed Policy 1: Assembly line workers are salaried employees. As a result, under federal and state wage and hour laws, they are not eligible for overtime pay and will not be compensated beyond their weekly salary amount for working over 40 hours per week.
3. ABC Overtime Proposed Policy 2: Assembly line workers shall receive comp time in the amount of 1.5 times any hours worked over 40 in a given work week. Comp time hours must be used within 6 months from the end of the week for which they were earned. Comp time hours not used within this period become invalid.
4. ABC Overtime Proposed Policy 3: Assembly line workers are paid solely based on production. As a result, assembly line workers are not eligible for overtime pay.
5. ABC Overtime Proposed Policy 4: Assembly line workers shall be compensated at the rate of 1.5 times their hourly rate for all hours over 40 worked in a given week.

Select the best Proposed Policy. Support your choice based on the applicable laws. Then, give legal reasons for rejecting all other Proposed Policies, setting forth each word, phrase or sentence which is a potential violation of the FLSA and the provision(s) that it violates.