Overtime:

Manager Misclassification

According to the Fair Labor Standards Act (FLSA), managers fall under the executive exemption from overtime. However, some employers classify managers, assistant managers, and associate managers as "salaried managers" or "supervisors," when in fact their actual job duties do no exempt them from overtime pay under FLSA regulations. It is an employee's job duties, not job title, that determine whether or not he or she can receive overtime pay.

If you are a manager or assistant manager and you believe you may have been wrongfully denied overtime pay, consider the following:

  • If you are paid on an hourly basis rather than a salary, you may be entitled to overtime pay regardless of your management duties.

  • In order to be exempt from overtime pay, a manager must actually "manage" or "supervise" two or more full time employees. This means that the employees report to you for work assignments and you oversee their daily tasks.

  • If your pay is docked when you miss part of the regular work day, you may be entitled to overtime pay. This is because pay docking is inconsistent with your status as a "salaried" manager or supervisor.

  • Managers and supervisors must spend at least 80% of their time in management duties. In retail and service industries, they must spend at least 60% of their time in management duties. Examples of management duties include setting the schedules of other employees, making decisions about the hiring and firing of other employees, and directing the work of at least two other full time employees. If you spend a significant portion of your time at work performing other tasks, such as ringing up sales or preparing food orders, you may be entitled to overtime pay.

  • If you are regularly required to fill in for non-salaried employees who fail to show up for work, you may be entitled to overtime pay for hours worked over forty in a workweek. 


If you believe you have been misclassified as a manager and may be entitled to overtime pay, an overtime lawyer can help you fight for the compensation you deserve.  

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