Your client is an advertising agency that pays inexperienced new models $20 per hour during a photo
Question:
Your client is an advertising agency that pays inexperienced new models $20 per hour during a photo shoot, but does not compensate them for preparation time spent in wardrobe fittings, hair styling, or applying makeup. Thus, after counting all hours worked, you are concerned that these models are being paid less than the minimum wage.
The Wage and Labor Protection Board in your state maintains a hotline for anonymous callers to report labor law violations. Informants receive a reward equal to 20% of the penalties collected from violators. If granted such a reward, you will donate it to charity.
Should you contact this hotline to report your concerns?
a. Yes, if you informed your client about this issue and it has refused to take corrective actions
b. Yes, as long as the reward, if granted, is paid directly to a charitable organization
c. No, because you learned of these violations during the course of rendering professional services
d. No, because you lack the professional training and expertise to know whether your client’s suspected misconduct is an actual labor law violation
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman