A national discount retail chain has successfully argued that its managers are exempt workers and do not earn overtime pay when putting in more than 40 hours during a given workweek.
The federal court ruled that the plaintiff, who had expanded the suit into a class action to include other such workers, met exemptions in state and federal laws, according to Law 360. The case isn't over yet, however, as the plaintiff and his legal team have appealed the ruling.
The heart of the case involved whether the plaintiff engaged in primarily managerial duties or did enough work similar to that of regular employees that the "executive" exception was wrongly applied to the manager.
Employee classification is a delicate issue. The tests to see if a worker is in an exempt position have multiple parts and all must be met before such staff members can be exempted from time and attendance requirements like overtime pay. Businesses should make sure all workers are appropriately classified by speaking with legal counsel and carefully determining the duties performed by employees, both in their job descriptions and in day-to-day operations.
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