Liang Zhao Zhang, a San Francisco-based janitor, made more than $275,000 in 2015. The average janitor in
Question:
Liang Zhao Zhang, a San Francisco-based janitor, made more than $275,000 in 2015. The average janitor in the area earns just $26,180 a year. Zhang, a Bay Area Rapid Transit (BART) janitor, has a base pay of $57,945 and $162,050 in overtime pay. With benefits, the total was $276,121. While some call his compensation "outrageous and irresponsible," Zhang signed up for every available overtime slot that became available.
To be sure, Zhang worked more than 4,000 hours last year and received overtime pay.
Can BART predict who might take advantage of overtime pay?
Should it set a policy restricting overtime pay?
Would it be better for BART to hire more regular, full-time employees instead of offering so much overtime to current employees?
Do the most senior employees sign up first and leave little overtime to others?
Will a senior employee get paid more for overtime than more junior-level employees?
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta