The payroll records of Mortimer Inc. revealed that all the employees worked an average of 48 hours in the month of June. Each worker received $7.20 an hour for the first 40 hours per week and $10.80 for the eight hours overtime. In May, some employees had been paid as much as $8.00 per hour for the first 40 hours, but the company reduced the scale when female employees complained that men were being paid more for the same work. The records also revealed that the plant manager and personnel manager worked as many as 60 hours per week but did not receive overtime pay. Discuss any legal problems that may exist in this scenario.
What will be an ideal response?
Students' answers may vary. Mortimer Inc. appears to be in violation of the Equal Pay Act because it lowered its higher pay rate for men to the lower pay rate it had been illegally paying women. The Equal Pay Act, on the other hand, clearly requires raising women's wages to the higher rate in order to remedy the prior discrimination. However, Mortimer's failure to pay overtime to the plant manager and the personnel manager is not illegal, for the Fair Labor Standards Act exempts executive and administrative employees from its requirements of overtime pay.
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