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NovaTextile Industries imposes a unilateral productivity standard: every operator must produce at least 125 units per eight-hour shift. The standard is tied to 18% of the operator’s weekly base pay as an incentive for meeting the target. Operator Lina’s output on two consecutive days falls short: Day 1 yields 90 units due to a machine breakdown lasting 2.5 hours, and Day 2 yields 110 units due to a critical component delay from a supplier lasting 1.5 hours. The supervisor automatically withholds 18% of Lina’s pay for those two days as a “productivity shortfall.” Lina objects, arguing that while productivity standards are a legitimate management prerogative, a penalty based on days affected by equipment failure and supplier delays is improper. (a) Identify the governing doctrine behind productivity standards as a management prerogative and the controlling rule for their lawful application. (b) Distinguish when productivity standards may be lawfully used to adjust pay or discipline employees and when they may not. (c) Apply the doctrine to the facts and determine whether the employer’s action is permissible, and what remedy Lina should seek.

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