After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Crown Linen LLC – based in Orlando, Florida – will pay $60,863 in back wages to 15 employees for violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).
WHD investigators found that the employer incorrectly considered two groups of employees as exempt from the overtime requirements as managers under the FLSA. This misapplication of the exemption resulted in the employer paying overtime-eligible employees flat weekly salaries with no regard to the number of hours they worked.
This practice resulted in violations when these employees worked more than 40 hours per week and were not paid overtime. Additionally, the employer paid other employees straight time instead of overtime when they worked over 40 hours in a workweek.
The employer also failed to maintain required records of the number of hours employees worked.
How your employer classifies you matters a tremendous deal to your income. If you have been lumped into a managerial position you will lose out on certain benefits that other workers receive, including overtime pay. The law is crystal clear about who should be tited a manager, so if you are worried that your employer has classified you as a manager in error, you may be entitled to financial compensation for back pay and overtime wages.
Our Orlando Employment Attorneys at Whittel & Melton are committed to protecting the rights of employees. We can help determine if a misclassification has occurred in your case and explore your options going forward.
Under federal law, certain qualifications must be met in order for an employee to be considered a manager, including:
- A guaranteed weekly salary of $455 per week
- No pay reductions based on the quality or quantity of work in any given week
- No pay deductions for normal business losses
- Managers must be responsible for directing the work of at least two employees
- Managers must be allowed to weigh in on hiring/firing decisions