01/11/2023
When is a “manager” not really a “manager”? Strap in for a short answer that later provides a ton of examples.
According to “Too Many Managers: The Strategic Use of Titles to Avoid Overtime Payments” (https://www.nber.org/system/files/working_papers/w30826/w30826.pdf) – a study published by the National Bureau of Economic Research – the answer is: when unscrupulous employers give employees misleading job titles and meet a salary threshold in an attempt to avoid paying them overtime.
The study gives examples of job titles with blurry lines between non-managerial titles and managerial titles, but whose job duties are presumably the same:
Receptionist (Non-Managerial Title) v. Front Desk Manager (Managerial Title)
Front Desk Clerk (Non-Managerial Title) v. Director of First Impressions (Managerial Title)
Reservation Clerk (Non-Managerial Title) v. Lead Reservationist (Managerial Title)
Host/Hostess (Non-Managerial Title) v. Guest Experience Leader (Managerial Title)
Carpet Cleaner (Non-Managerial Title v. Carpet Shampoo Manager (Managerial Title)
Asset Protection Specialist (Non-Managerial Title) v. Asset Protection Coordinator (Managerial Title)
Barber (Non-Managerial Title) v. Grooming Manager (Managerial Title)
Food Cart/Coffee Attendant (Non-Managerial Title) v. Food Cart/Coffee Manager (Managerial Title)
Misclassification of Managerial Titled employees as exempt from overtime is prevalent in the following industries: food service and drinking places; building material and garden equipment/supply dealers; retail, general merchandisers; food and beverage stores; insurance carriers; repair and maintenance; health and personal care stores; professional, scientific, and technical services; amusement, gambling, and recreation; credit intermediation; and merchant wholesalers.
It is likely that employees with Managerial Titles are being deprived of overtime wages under federal and state wage laws because their job duties are that of Non-Managerial employees.
Here are some recent cases where employers are alleged to have failed to pay overtime to employees with Managerial Titles:
Covelli Enterprises, the country’s largest Panera Bread franchisee, settled a class action case brought by its Assistant Managers for $4.6 million where the Assistant Managers alleged they were not paid overtime because the were wrongly classified as exempt from overtime protections.
Department Managers working for Publix Super Markets, Inc. brought a collective action alleging they were misclassified as exempt from overtime because of their Managerial Titles. The Department Managers alleged they should have been paid overtime because their job duties did not include the type of executive responsibilities that typically accompany overtime-exempt jobs, including tasks that require the exercise of meaningful judgment and discretion, but instead consisted of manual tasks typically reserved for non-overtime exempt employees, such as preparing and stocking food, servicing customers, and cleaning. This case is still pending.
JPMorgan settled a class action case brought by its Assistant Branch Managers for $16.7 million where the Assistant Branch Managers alleged they were owed overtime because they had no management duties even though they were classified by JPMorgan as exempt from overtime.
Facebook has been sued by its Client Solutions Managers because they allege it deliberately misclassified them as managers in order to avoid paying overtime.
Bojangles’ was sued by its Assistant Managers for failing to pay overtime. The Assistant Managers allege they were not actually managers and instead spent most of their time cleaning, taking orders, serving customers, and preparing, cooking, and packaging food.
Avis Budget Car Rental LLC settled a class action brought by its Shift Managers and Operations Managers for $7.8 million. The Shift Managers and Operations Managers alleged they were wrongfully classified as exempt from overtime when, in fact, they should have been paid overtime.
OfficeMax, Inc. settled a class action brought by its Assistant Managers for $3.5 million where the Assistant Managers claimed that OfficeMax failed to pay overtime. According to the Assistant Managers, their job duties did not include managerial duties, but instead included work like customer service, stocking shelves, down-stocking, operating cash registers, unloading trucks, selling merchandise, setting up displays, counting inventory, and cleaning the store.
Verizon Communications Inc. was sued by its Logistics Workers who allege Verizon misclassifies them as supervisors to avoid paying overtime. The plaintiff in this case has never overseen anyone, but himself.
Lowe’s settled a class action with its Human Resource Managers for $9.5 million where the Human Resource Managers alleged Lowe’s misclassified them as exempt from overtime. Though the Human Resources Managers had the word manager in their job title, they lacked authority to fire or hire, promote, discipline, or give raises to workers.
Walmart agreed to pay $4.83 million in back wages and damages to Vision Center Managers and Asset Protection Coordinators it had illegally denied overtime as a result of a Department of Labor investigation.
Staples settled class action lawsuits brought by its Assistant Store Managers for $42 million where the Assistant Store Managers alleged they were misclassified as exempt from overtime.
If you have a Managerial Title, but think you should be entitled to overtime based on your actual job duties, contact the attorneys at Richardson & Cumbo, LLP for a FREE consultation.
Phone: (617)217-2779
Email: [email protected]