Written Assignment 2 You are the sole proprietor of the Surf-it™ USA Surf Shop on Malibu Beach, California. Your shop is a

Written Assignment 2

You are the sole proprietor of the Surf-it’ USA Surf Shop on Malibu Beach, California. Your shop is a high-end venue catering to a wide variety of surfing enthusiasts, providing both surfing equipment sales and daily rentals. Your shop has a robust business, especially in the summer months. In March of this year, you decided to close the shop temporarily.  You based your decision on the statewide shelter-in-place order, the increasing number of new Covid-19 cases in California, the Congressional approval of additional funds for those unemployed, and the availability of business loans through the CARES Act. You also choose to lay off all your employees.

 While the store was closed, you were able to make planned repairs and improvements to your building and added other sales categories, such as golf and tennis equipment.  

You have been concerned about your workforce.  Specifically, you have several underperforming employees.  You believe that some of them will not return if called back to work. You are reluctant to terminate any of your permanent employees since some have been with the store since it opened.

During the shutdown, it became necessary to liquidate inventory due to storage issues. You conducted several ‘yard sales’ to dispose of the items. You and your immediate family members served as the salesforce for the yard sales; none of your employees were called back to work for these events.

Now that the epidemic appears to have passed, and the state has reopened the beaches, you are entertaining the prospect of reopening and bringing back the former employees. You have several decisions to make:

First, should you reopen for limited days and hours and gradually get the employees back, hoping to reopen under regular hours within a month?

Second, should you reopen under the pre-COVID operating hours and employment levels?

Third, without regard to which of the approaches you take, in what order do you reemploy your former employees?

You face several issues.

1.     Since you let all the employees go simultaneously, what measures will you use to decide whom first to rehire? You are considering using the employee’s length of service (seniority) before the initial closure. In the alternative, should you pick the most productive employees to hire back first? Will this approach create additional problems, such as legal claims?

2.     Several employees have obtained jobs at other companies (some in Malibu and some in other areas of the country). You have spoken with a few of your higher-performing former employees.  They told you that they would not return unless their pay rate is more than what they were earning before leaving. Are there any problems presented by granting these individuals raises and not offering the same to the other employees?

3.     If you do not provide offers of re-employment to all individuals, are you exposed to legal claims?

4.     Have you created issues during the yard sales by not providing temporary employment to former employees?

 

Required:

In between 500 and 1,000 words, please address each of the three questions raised, providing support for your answers. Also, please present any other issues that you foresee are problematic.


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