Abercrombie & Fitch Case Study

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Facts of the Case
In Mitchell v. Abercrombie & Fitch, Co. the petitioner proposed a case against Abercrombie & Fitch stating that the defendant has violated both the Fair Labor Standards Act and the Ohio Minimum Fair Wage Standards Act. The plaintiff, Melissa Mitchell, has decided to pursue a lawsuit on behalf of herself as well as other affected members. The specific violations that arise from these two acts stem from Abercrombie & Fitch’s negligence with regards to paying Managers-in-Training and Assistant Managers the proper raised compensation of overtime pay (428 F.Supp.2d 725 (2006)).

It is noted that during her time working at Abercrombie & Fitch, Ms. Mitchell did earn more than the minimum wage (428 F.Supp.2d 725 (2006)). She was paid an additional half time for all hours worked over forty per work-week. Abercrombie & Fitch’s main defense point relies on the
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Abercrombie & Co. is if Abercrombie properly compensated Mitchell during her time with the company. As a Manager-in-Training, Mitchell should be classified as nonexempt and therefore be provided with overtime compensation. Should Ms. Mitchell continue to be an Abercrombie & Fitch employee and eventually be promoted to Store Manager, she would subsequently be exempt from the Fair Labor Standards Act. The main distinction between the two positions is the increase in managerial responsibility and skill required tasks. A Manager does not perform the repetitive, menial chores that are assigned to a Manager-In-Training. Mitchell believed that Abercrombie’s fluctuating workweek method of supplemental pay was not fair and that there was never a mutual understanding of the pay rate. She saw the supplemental pay as a bonus, but also felt entitled to receive the required overtime compensation. The court ultimately ruled that Abercrombie’s payment method was legal because Mitchell agreed to the employee guidelines and signed off on the guidelines of the employee

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