07 Apr Are you a salaried manager? You need to read this.
Just because the word “manager” is in your job title does not necessarily mean that your employer can pay you a salary.
Under the Fair Labor Standards Act (FLSA), employees who work over 40 hours per week are generally entitled to time-and-a-half compensation for overtime. 29 USC § 207(a)(1). While some exceptions (known as “exemption”) to this general rule exist for certain employees who work in a bona fide executive, administrative, or professional capacity, all non-exempt employees must be paid time-and-a-half overtime for hours worked in excess of 40 each week.
While a “manager” May fit within the administrative exemption from the overtime requirements of the FLSA, the “manager” must: (1) be paid a salary that exceeds the minimum established by the regulations; (2) mainly perform “office or non-manual work directly related to the management or general business operations of the employer; and (3) be an employee whose “primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.” 29 CFR § 451.2000(a).
The third requirement has been the subject of much litigation. Recently the 11th Circuit Court of Appeals reaffirmed that many jobs do not involve the “exercise of discretion and independent judgment with respect to matters of significance.” Brown v. Nexus Bus. Sols., LLC, 20-13909, 2022 WL 982860, at *2 (11th Cir. Apr. 1, 2022) “Only those employees who engage in ‘the comparison in the evaluation of possible courses of conduct, acting or making a decision after the various possibilities have been considered,’ make the cut.” Id.
However, as the Court in Brown stated, “[a] worker need not have ‘limitless discretion’ or a total lack of supervision to qualify as an administrative employee.” Id. citing Hogan v. Allstate Ins. Co., 361 F.3d 621, 627 (11th Cir. 2004). Instead, a factual analysis of the specific job, the discretion the employees did have, and the impact that the discussion has on matters of significance, is necessary to determine if a “manager” is truly exempt from the overtime requirements of the FLSA.
If you are a salaried manager and believe that you may be improperly designated as exempt from the overtime requirements of the FLSA, it is important that you speak with a qualified attorney specializing in labor and employment law to evaluate your potential claims. In most cases, there is a very short window of time (only two years) to pursue unpaid overtime under the FLSA. If you are improperly deemed exempt, and you are successful in your case, you could be entitled to you unpaid overtime, an equal amount as “liquidated damages” and your attorneys’ fees and costs.
Read the full opinion from the Eleventh Circuit Court of Appeals here: https://media.ca11.uscourts.gov/opinions/pub/files/202013909.pdf