Managing Nonmonetary Compensation

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Executive Summary

Background and Introduction

Andrew Nelson, an accomplished respiratory therapist, works for Breathing Care Associates, and works out of the local hospital. High turnover, lack of managerial skills, and trying to lower labor costs has lead Drew to work many hours over his normal hours. He is an exempt employee and is not entitled to overtime, but he does get a dollar an hour for on-call services. Andrew has met his maximum “earned time” off and is in need of a vacation, but is denied because of staffing and the unwillingness of his supervisor to pay overtime to the non-exempt employee.

Main Conclusions

Andrew needs time off before he gets too “burned out,” but also needs to make sure the hospital is covered for the time he is going to be off. The concerns of his supervisor as well as his only other employee need to be taken into consideration.


Andrew Nelson is entitled to time off, so he needs to convince his supervisor of other alternatives to getting the time off. It is suggested by the team to hire an outside temporary agency for that week. Not only will Andrew be able to get some much needed time off, but it will alleviate the other employees’ fear of working seven days in a row. It would also be in Mr. Barnes’ (Andrew’s supervisor) best interest. He doesn’t want any more turnovers, especially when he only has two therapists.

Table of Contents

Executive Summary1
Background and Introduction1
Main Conclusions1

Managing nonmonetary compensation 2
Limitations, Conclusions and Recommendations5
Hospital Obligation 6

Managing Non-monetary Compensation

Andrew (Drew) Nelson is an exempt employee and the supervisor of a respiratory therapy department and because of recent turnovers and his bosses demand for decreased labor costs; he has worked an abundance of hours over his regular hours. Drew needs some time off to regroup, and has accrued his maximum of “earned time”, however, he has been denied his vacation request (Nkomo, 222). According to his supervisor (Matt), it is unfair to make Barb (the only other therapist) work seven days in a row and, in addition, does not want to pay overtime to Barb. Barb is also unwilling to work the hours even though Drew has done it for her in the past. We (Team C) will discuss Drew’s alternatives, recommendations, and the obligations of the hospital to exempt employees, in the following this paper. Background

Drew Nelson has an accomplished educational background in respiratory therapy, but doesn’t have the “formal management” skills he may need for his position as supervisor of the respiratory therapy department (Nkomo, 222). Drew Nelson is employed by Breathing Care Associates, and works out of the two local hospitals, that is, until one of them closes for “economic reasons.” Drew oversees four subordinates, but in the past two months three of the four have quit or resigned leaving Drew and another (Barb) to handle the demands of the department. Drew has been asked by his supervisor to lower the labor costs in his department. His lack of management skills leads Drew to pick up the slack, which will lower the labor cost. He is an exempt employee, which is an “employee to whom employers are not required to pay overtime under the Fair Labor Standards Act,” and Drew has put in 140 hours over hours over his regular time (Mathis, 337). Drew has asked for time off but has been denied his request because of the low staffing and the unwillingness to pay overtime to the only other therapist. Drew cannot fall back on the labor union as he doesn’t belong to one; however, the hospital does have a “bargaining unit” (Nkomo, 222). Alternatives

The earned time accrual and use policy does not guarantee Nelson his requested time off. The policy states that supervisors...
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