Violations of FLSA and the Future Effect Paper

Violations of FLSA and the Future Effect Paper

Instructions/Descriptions

Violations of FLSA and the Future Effect Paper

Instructions:

Assume the following facts based on the Jennings case study:

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• Agristar, the successor company to Agriprocessor Inc., has decided to sell the meatpacking plant.
• Your client, Agriprofit, has asked your consulting firm to evaluate the wisdom of acquiring the company. Specifically, as the case study indicates, the plant requires a large employee base of unskilled workers and the previous owners had not been able to hire enough employees without resorting to hiring alien workers.
• Agriprocessors got into trouble after the workers requested jobs for their minor children to increase household income.
• Agriprofit has no intention of hiring minors to work in the plant or undocumented aliens but papers can be forged and sometimes, the company must look the other way to meet its production quotas.
• Given the federal government’s inability to resolve the problem of illegal immigration and the Supreme Court’s decision in Arizona vs. U.S.,

which limits a state’s ability to pass legislation to resolve the issues inside of its own state borders due to the Supremacy Clause, companies that require unskilled workers have little legal guidance and a lot of criminal and civil exposure if the company’s workforce violates immigration and employment laws and regulations.

• Illegal workers have a different perspective. Many are grateful for employment but pay the price of abusive working conditions. These workers cannot behave as organized labor, in the traditional sense, because they do not wish to be deported.

Your management team must prepare a memorandum (3-5 pages) addressing the business issues raised by this case from the perspectives of different stakeholders affected by the problem. In conclusion, your team must advise the client whether to acquire the company and the reasons for your recommendations.

The FIU Management Team 13

SUBJECT:

Issues raised by acquiring Agristar’s meatpacking plant.

In partial fulfillment of the requirements of the course:

BUL 6810

Abstract

This memorandum addresses the issues with the plant’s personnel raised in the due diligence for acquiring Agristar’s meatpacking plant. Employees with no formal education mainly formed their plant’s workforce to meet production quotas.

In the past, the plant hired undocumented alien workers, which led the company to trouble when they asked for their children to join their plant’s workforce to increase their household income. Agriprofit’s objective is to keep a legitimate employee roster with no minors or undocumented aliens.

Wage and Hour Laws: FLSA Compliance

The Fair Labor Standards Act (FLSA) provisions include a minimum wage of $15 per hour and time-and-one-half pay for overtime calculated after employees’ 40 hours per week, excluding children under 18 years old.

FLSA protections are primarily for private and public sector employees except for elected state or local government offices and staff members. FLSA also includes child labor protections and specific settings under which children could work. FLSA covers all agricultural employers but prohibits minors in any job related to meat slaughtering, processing, and packing.

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Under FLSA, a covered enterprise must have at least two employees and annual sales or revenue of $500,000 or more; or hospitals, schools, medical care for residents, government, and agencies. In addition, FLSA covered individuals involved in interstate commerce or the production of goods for interstate commerce.

Employees are not allowed to do Company work outside of working hours, aside from overtime previously approved by their manager. Employees asked to go against this policy should notify Human Resources.

Each FLSA covered enterprise must keep records for each covered worker, including Employee’s full name and Social Security number, complete address with ZIP code, birthdate, Sex, Occupation. Also, hire date, workweek schedule, hours worked each day, total hours worked each workweek, regular hourly pay rate, all additions or deductions from the Employee’s wages.

Child Labor Protections

According to the Iowa Child Labor laws, children 16-17 are prohibited from certain dangerous tasks, and children 14-15 have the same restraints and limits on hours. Therefore, for Agriprofit to continue using children for labor, they would have to file for a permit.

However, that permit would limit what the underage workers can do, which according to the 2008 investigation of Agriprocessor these youth have been hired to do these prohibited activities.

Having their children hired to help is an advantage and benefit to their family for the alien workers. It supplements the household income leading to better lives for these individuals. On the other hand, it is illegal to use them in the way they have been used and could lead to excessive fines that would bankrupt Agriprofit as it has bankrupted Agriprocessor.

Furthermore, it could be argued that the best place for these children would be in a school to get an education for a better future instead of working all day at a company.

Agriprofit could still choose to hire the children by employing them for tasks that match the Iowa Child Labor law criteria, but analysis of the profit of this decision would have to be made. This would mean that children would be working and supplementing the household income but would be limited to the number of hours they work for the company allowing them to go to school during the day

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Violations of FLSA

The corporation is liable. Officers can be held individually liable. Fines – $10,000 first conviction. $10,000 and or six months for a second violation. Employees cannot be fired for reporting violations.

Immigration and Employment

<in this section we can draft what and the immigration and employment-related issues with undocumented aliens: It is unlawful) to hire, or to recruit or refer for a fee, for employment in the United States an alien knowing the alien is an unauthorized alien… with respect to such employment. (See full text in Management Team assignment #3) >

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Future Impact

<in this section we can draft what will be the consequences or issues in the future the company will have to deal with by acquiring the company. Penalties for Employment LAW Violation>.

Conclusion/Recommendation

in this section we can write our recommendation as to proceed with the company acquisition or not

Violations of FLSA and the Future Effect Paper

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