Pursuant to the Fair Labor Standards Act (FLSA), generally all non-exempt
workers who put in more than 40 hours in any work week are entitled to
earn overtime pay at a rate of one and one-half times their standard rate
of pay for the extra time worked. Thus, determining who is exempt and
who is not is significant. A misclassification may result in workers being
denied significant take home pay.
One area that has been particularly subject to classification errors is
in the area of retail. Often, managers of retail stores are salaried employees
who are considered exempt. Exemptions fall into three categories –
executive, administrative or professional. Many times retail managers
are incorrectly designated as exempt based on the executive exemption
which covers: 1) those employees who’s primary duties consist of
either managing an employer’s business, or a specific department
of the business; 2) customarily and regularly direct the work of at least
two full-time employees; and 3) have the authority to hire or fire other
employees, or have significant input into hiring, firing, and other important
employment decisions. Typically, the jobs that that qualify for this exemption
are executive level positions, high-level managers, and other individuals
who manage and control some important aspect of the company’s business.
However, in the retail arena many times “managers” spend a
significant amount of time performing non-managerial work.
In these situations, the executive exemption may not apply. Where management
is not a worker’s primary duty (regardless of job title) such misclassification
may deny workers overtime pay they deserve.
For more information about overtime pay or if you have questions concerning
your employment classification, please contact the experienced
Georgia wage and hour lawyers at Buckley Beal, LLP for an immediate consultation.