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.

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 complete all tasks pursuant to our closing procedures. Because these are preparatory tasks, you will not be compensated for these periods.

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.

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.

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.