Evaluate each of these alternatives on the basis of the law and practical management considerations. Select the best Proposed Policy. Support your choice on the basis of the applicable laws and practical management considerations. Also, set forth any proposed improvements to your selection. Then, set forth legal and management reasons for rejecting each other Proposed Policy, setting forth each word, phrase or sentence which is a potential violation of the FLSA and the provision(s) which it violates.

XYZ Apparel is a retail store that employs 25 part-time retail clerks. The duties of the

retail clerks include stocking shelves, reconciling the register, apprehending shoplifters,

customer service and sales. You are the HR Director and are evaluating the following

alternative policies.

a. XYZ Proposed Policy One: XYZ provides excellent entry-level opportunities. We

pay all retail clerks in accordance with the required minimum wage. XYZ requires

all retail clerks to arrive at least 10 minutes before their shifts begin and to

remain on the premises after the store closes to finish tasks pursuant to

our closing procedures. Because these are preparatory tasks, you will not be

compensated for these periods.

b. XYZ Proposed Policy Two: XYZ is a retail sales operation. Given that you are a

customer sales representative, you will not receive a salary or hourly wage, but

will be compensated solely on the basis of a 5% commission of your gross sales.

c. XYZ Proposed Policy Three: XYZ compensates all retail clerks in the amount of

the required minimum wage for all hours worked, including preparatory time

and time required after your shift to perform assigned closing duties.

d. XYZ Proposed Policy Four: XYZ compensates all retail clerks in the amount of the

required minimum wage for all hours worked, including preparatory time and

time required after your shift to perform assigned closing duties. You will be

granted a one half hour lunch period in the event that your shift exceeds four

consecutive hours. You must remain in the store during these periods. Though it

is rare, you will be on-call during your lunch period to help out. Due to the

difficulty of compensating for these random on-call duties, you will not be

compensated for your lunch period.