Many employers think they can avoid paying overtime just by saying that the employee is “salaried.” They find out the hard way this isn’t true. This often comes up when an employer calls an employee a “supervisor” or a “manager,” but that person doesn’t really meet the definition of “manager.”
Our firm recently settled a case on behalf of a store manager who was paid a salary and worked 50 or more hours per week. He was called a “manager,” but had very little actual authority. He cleaned the store, stocked shelves, and did the same work that other employees did. There was a dispute over whether or not he could hire or fire employees. The federal judge refused to throw out the case, finding that a jury could conclude that his duties really were not those of a manager. The case settled shortly after the judge’s ruling.
In order to be a true “manager,” and thus not be entitled to overtime, the employer must prove:
- The employee’s salary was at least $455 per week;
- The employee’s primary duty must be management;
- The employee must customarily and regularly direct the work of two or more full time employees; and
- The employee must have the authority to hire or fire, or the employee’s suggestions regarding hiring, firing, advancement, promotion, or change of employee status must be given particular weight.
Notice that the employer has to prove these four points, and he has to prove ALL of the four points. In other words, a lot of folks are getting paid as managers who should be paid overtime.
That may be happening to the assistant managers at T.J. Maxx. A federal judge in New York has just certified a collective action (similar to a class action) on behalf of assistant managers at the retail giant. If you are being paid as a manager, but you don’t really perform management duties, you may be owed a significant amount of overtime.