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Is ethical for company to offer managers a salary position

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Susie's Sweater Factory employs two managers for the factory. These managers work 12 hours per day at $16 per hour. After eight hours, they receive overtime pay. Management is trying to cut costs. They have decided to promote the managers to a salary position.

The managers will be offered a daily salary of $200. Since they would be promoted to a salary position they will not receive overtime. The company has required they accept the promotion or find employment elsewhere.

Question 1: Is it ethical for the company to offer the managers a salary position?

Question 2: Is it ethical to require the employee to accept the promotion?

Question 3: Should the managers accept the promotion?

Reference no: EM132687166

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