Raleigh & Rosse: Measures to Motivate Exceptional Service

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Case Overview
Raleigh & Rosse, a luxury goods brand is facing a class action lawsuit under the Federal Fair Labor Standards Act (FLSA) for allegedly violating state wage and hour laws due to the company’s failure to record all time worked and to pay associates for performing non-selling activities (Simons and Mahoney, 8). This follows the introduction of a sales per-hour (SPH) program that created a challenging working environment for employees and resulted in unlawful termination. It put a lot of pressure on store managers and sales associates. For instance, the SPH program coerced company employees to work off the clock without pay. The plaintiffs, R&R sales associates are seeking damages equal to double the amount the unpaid wages and other punitive damages. This case subjects the company to a potential risk of a $200 million judgment and major reputational damage (Simons and Mahoney, 8).
Cause of the Problem
The cause of the problem is the introduction of the SPH program. This program has complex rules that store managers and sales associates consider punitive. It forced the sales associates to work overtime without pay. The program also had an unreasonable performance measurement technique. It measured employees by their sales per hour ratio. To remain productive, the program required sales associate