Not all managers are exempt from getting paid time and a half for those hours worked over forty in a week. While the Fair Labor Standards Act (FLSA) does have an “executive” exemption, not all managers are necessarily covered by the exemption. However, many employers simply assume that the exemption applies without any real analysis. Under the exemption, there are very specific criteria outlined that need to be satisfied in order for a manager, supervisor, or other executive position to fall within the exemption.
The first thing considered in determining whether a manager is exempt from overtime pay is the manager’s salary. The manager must make at least $455 per week in order to meet criteria. Next, the primary duty of the manager is examined. Most courts have found that this prong needs to be determined on a case by case analysis; however, a general evaluation of the amount of time doing actual managerial work is involved. Other inquiries include the importance of the manager’s duties to the business and the amount of discretion that the manager is permitted to use. Related to this examination is the requirement that the manager have the authority to hire and fire other employees or at the very least have their recommendations regarding hiring and firing given “particular weight” The final requirement is that the manager must also oversee at least two other full-time employees and direct their work. If a manager does need meet all four of these prongs, then the manager does not fall under the exemption and, therefore, should be getting paid time and a half for overtime hours.
If you are a manager not getting paid time and a half for your overtime hours, then you should contact us immediately to see if such wages are being rightfully withheld. Please see our website at www.pbmattorney.com for more information.