Managers want overtime pay from Family Dollar
In a recent payroll dispute, a manager at a Family Dollar store charged the company for unpaid overtime employee attendance. The worker claims she was misclassified under the manager exemption, which meant she was ineligible for overtime pay. The court ruled against the manager, deciding that she was exempt under the managerial provision.
This case is part of a recent uptick in the number of FLSA lawsuits being filed by managers who claim they should be classified as non-exempt employees that are guaranteed overtime wages. Managers are making cases based on the fact that they spend most of their time performing the same tasks as non-exempt employees.
However, the FLSA does not include provisions limiting the amount of time a manager can spend doing manual labor. In the case of the Family Dollar lawsuit, the company was able to prove through recordkeeping that the manager in question supervised two employees, ordered merchandise, set schedules, trained new hires, made recommendations for promotions and was able to fire employees without approval from higher-ups.
With accurate recordkeeping and solutions such as employee payroll services, companies can prove that they have compensated workers correctly and avoid paying lawsuit settlements.
This case is part of a recent uptick in the number of FLSA lawsuits being filed by managers who claim they should be classified as non-exempt employees that are guaranteed overtime wages. Managers are making cases based on the fact that they spend most of their time performing the same tasks as non-exempt employees.
However, the FLSA does not include provisions limiting the amount of time a manager can spend doing manual labor. In the case of the Family Dollar lawsuit, the company was able to prove through recordkeeping that the manager in question supervised two employees, ordered merchandise, set schedules, trained new hires, made recommendations for promotions and was able to fire employees without approval from higher-ups.
With accurate recordkeeping and solutions such as employee payroll services, companies can prove that they have compensated workers correctly and avoid paying lawsuit settlements.
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