Assistant Managers Denied Overtime Pay

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Assistant managers are commonly the victims of employee misclassification, an illegal overtime scam in which an employer intentionally misclassifies their assistant managers as exempt from overtime wages.

Generally, overtime law states that non-exempt employees must receive overtime pay, while exempt employees are not entitled to additional compensation for their overtime hours. Retail assistant managers belong to a group of workers who are commonly misclassified as exempt employees under overtime law. By misclassifying an assistant manager as exempt, the employer attempts to avoid paying time-and-a-half compensation to that employee. However, when an assistant manager is performing non-managerial job duties, they should receive 1.5 times their regular rate for every hour worked in excess of 40 during a single workweek. Because overtime exemption status depends on job duties, rather than job titles, misclassified assistant managers may be able to file unpaid overtime lawsuits to recover back pay.

Denied overtime as an assistant manager? Your employer may have violated overtime law and misclassified you as an exempt employee in an attempt to avoid paying overtime. Fill out our free case review form today and an overtime attorney will review your claim to determine if you are owed back pay.

Misclassified Assistant Managers

Employee misclassification is an illegal wage and hour practice that is commonly employed in retail, wholesale and similar industries. Employee misclassification occurs when an employer deliberately classifies a non-exempt employee (one who is entitled to overtime pay) as an exempt employee in an attempt to avoid paying overtime. Assistant store managers, particularly those who work in retail or wholesale, are commonly misclassified and are therefore unfairly denied overtime pay.

An assistant manager’s job duties must be examined when determining whether they are entitled to overtime pay. The following non-managerial job duties typically belong to workers who are entitled to overtime compensation:

  • Operating cash registers
  • Stocking shelves
  • Janitorial duties
  • Answering phone calls

On the contrary, when an assistant manager has the ability to hire or fire other workers, exercise discretionary power or make weighted recommendations regarding other workers, they generally should be classified as an exempt employee and are therefore not entitled to overtime pay.

Retail Assistant Managers: Unpaid Overtime Lawsuits

In recent years, there have been a number of unpaid overtime lawsuits filed on behalf of assistant store managers. The following provides an overview of these overtime cases:

BJ’s Wholesale Club: The popular warehouse retail store was accused of allegedly failing to pay overtime wages in violation of federal and state law. According to the unpaid overtime lawsuit, nearly 1,500 current and former midlevel managers were misclassified as exempt from overtime pay. In Nov. 2009, BJ’s Wholesale Club reached a $9.3 million settlement with the plaintiffs.

Home Depot: An unpaid overtime lawsuit filed against Home Depot in March 2010 alleged that the home improvement chain purposely misclassified assistant managers in training as exempt under New York labor law. The plaintiff in the case alleged that Home Depot misclassified assistant managers as exempt from overtime wages during the two to eight week training period where trainees are required to work in excess of 40 hours per week.

Staples: In Jan. 2010, Staples Inc. agreed to a $42 million global settlement of 13 employment lawsuits seeking overtime compensation on behalf of 5000 current and former assistant store managers.

Fastenal: The Minnesota-based supplier of construction and industrial supplies agreed to enter a preliminary agreement to pay $10 million to settle unpaid overtime claims which alleged that the company failed to pay overtime wages to its assistant managers at its stores in California. According to the unpaid overtime lawsuit, Fastenal allegedly violated state and federal law by improperly classifying its assistant managers as exempt employees.

Overtime Attorneys for Assistant Store Managers

If you are performing non-managerial job duties, such as stocking shelves and operating cash registers, and are not receiving time-and-a-half pay for your overtime hours, it is possible that you have been improperly misclassified by your employer. By contacting an overtime lawyer, you can determine your exemption status under overtime law and find out whether you can file an overtime lawsuit to recover back pay, among other damages. Speak with our overtime attorneys today by completing our free, no obligation case review form on the right. Our overtime lawyers are dedicated to protecting the rights of assistant store managers and other employees who were wrongfully denied overtime pay.

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