Gap Inc (GPS) and Target Corporation (TGT) Probed For Hourly Wage Practices

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Several big retailers have come under the scanner of the attorney general of New York on practices adopted in paying hourly wages to workers. This includes Gap Inc (NYSE:GPS), Target Corporation (NYSE:TGT) and Sears Holdings Corp (NASDAQ:SHLD). The attorney general’s office appears to have issued letters to 13 retail chains last week, seeking information on the so-called ‘on call shift’.

Little Advance Notice

Eric Schneiderman, Attorney General, sought information on the little advance notice given to employees on the hours they are asked to work. Employees are able to find out only a few hours before their work schedule commences or the night before the shift starts. Employees are not paid when they have been advised to stay at home.

Retailers like Gap Inc (NYSE:GPS), Target Corporation (NYSE:TGT) and Sears Holdings Corp (NASDAQ:SHLD) are charged with allegations of adopting unfair practices. As a result, the AG said in his letter that the erratic schedules make it tough for anyone to manage the requirements of their family, like school schedules or child care. The letter said that employees of these shifts bear the brunt of financial, as well as health impact, as overall strain and stress on family life can occur.

Minimum Hours

According to the law in the New York and eight other States, employees have to be paid a minimum wage for four hours if the employees report for a specific shift. The AG’s office disclosed that it received complaints that the number of big retailers resorting to using the on-call system was growing, at the cost of employees. This helps retailers to manage staff levels, especially during the peak and non-peak hours, but employees bear the brunt of losing wages.

Gap Inc (NYSE:GPS) indicated that the company was firm on its commitment to ‘sustainable scheduling practices’ to enhance stability for its employees. Sears Holdings Corp (NASDAQ:SHLD) said that they would cooperate with the AG’s office. Target Corporation (NYSE:TGT) is yet to reveal its position.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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