Parkleigh Pharmacy is an upscale department store in Rochester, NY, that sells personal accessories and home decorations. Kaufmann’s is a departmental store based in Pennsylvania and has several stores in Rochester, NY. Kaufmann carries a broad range of products and caters to middle-class customers. A salesperson at Parkleigh is paid a straight hourly wage (e.g., no sales commission) and a 30% discount from purchasing any product from Parkleigh’s store. A salesperson at Kaufmann gets an hourly wage lower than Parkleigh s hourly wage but gets a 5% commission on sales. However, the product salesperson buys from Kaufmann without a discount.
Why does the compensation plan differ between the two firms?
Consider the following scenario:
You own a local ice cream shop. The local labor market is 50% female and 50% non-white, yet almost all your employees are white males. To diversify your applicant pool, you have advertised your job openings in local newspapers, attended local job fairs, and posted Help Wanted signs in your shop. Are you legally required to act affirmatively? Are you acting affirmatively? Explain.
