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Williams Law Group
137 Public Square
Lebanon, TN 37087
local: 615-444-2900
toll free: 866-820-4457
fax: 615-444-6516

Nashville City Center
511 Union Street, Suite 1850
Nashville, TN 37219
local: 615-313-3999

Some employers have been avoiding overtime pay laws, requiring their employees to work long hours, while providing minimal or no extra pay. This requirement may include requiring employees to report to the work site before actually going on the clock.  Many types of jobs are affected, from bus drivers, factory workers, fast food employees and personal attendants to computer technicians. The list of companies involved in overtime lawsuits have included major US companies such as Wal–Mart, Target, and Starbucks.

With some exceptions, federal law requires employees to receive 150% or 1 1/2 times their pay rate per hour when they work more than 40 hours a week.

Misclassifying Employees to Avoid Overtime Payments

Certain types of employees are not eligible for overtime pay, including executives and administrators. In an effect to avoid paying overtime, some companies have misclassified employees, giving them executive and administrative titles when they actually did other jobs.

Under federal law, workers are considered managers or executives if they:

• Are paid on a salaried basis (at least $455 per week)

• Oversee at least two full–time employees

• Have the authority to hire and fire workers

• Have the main duty of managing the business, or managing a customarily recognized department or division of the business

The fast–food restaurant business provides an example of how an employer can unfairly misclassify a worker as a manager. Consider an employee who spends most of the time serving food or working the cash register, and spends only a small portion of the day supervising other employees. Although this employee may have the title of “manager” or “supervisor,” he or she does not really fit into the executive category and should be receiving overtime pay.

Administrators are defined as workers who perform office or non–manual work directly related to management or general business operations. These jobs include tasks such as accounting, human resources, and legal work. To be ineligible for overtime pay, the employee’s primary job must involve exercising “discretion or independent judgment.” As an example of how this test works, a personnel clerk in a human resources office who merely screens applicants is probably not an administrator, and would be eligible for overtime.

 If you feel that you have been unjustly denied overtime pay, we can review your case and advise you of your legal options.  Please feel free to contact us.  We would like to help.