HR 434 Take Home Exam #1 Due Sunday night of week #4 Name:__Jessica Washington_______________

1. (10 points) What changes are occurring in the workforce relative to the kinds of work employees are performing?

Before there was computers to do all the work in manufacturing companies, employers were spending up to 40 cents on the dollar for base pay and compensation packages for employees. Due to all the computer being used today this number has gone down along with the manufacturing employment. Today, less than 20 percent of the workforce is involved in manufacturing. More people are now working in service-related industries and jobs. More than 70 percent of all workers perform what is known as service jobs. Most service-sector organizations are heavily labor concentrated, and it is not unusual for service-related companies to spend 40 cents and sometimes as high as 80 cents of each revenue dollar for employee compensation costs. As you can see service-related companies spend much more in compensation costs than what was being spent in the manufacturing economy. Due to the work being heavily labor concentrated it is very necessary for them to compensate them accordingly.

2. (10 points) Discuss what is meant by the term exempt employee and the various exemption criteria established for identifying this group of workers.

An exempt employee is one that the minimum wage and overtime requirements of the FLSA do not affect, if they meet certain requirements regarding job duties and responsibilities and are compensated on a salary basis and not less than stated amounts. In order to be considered “salaried,” employees must receive their full salary for any workweek in which they perform any work without considering the number of days or hours worked. This rule applies to each exemption that has a salary requirement. An executive