“Can a Manager qualify for Over Time even though I am Exempt?”

Last night I responded to a sent question that should receive special merit and mention because it was such a good one and a common abuse in employment law –

“Can a manager be paid overtime even if they’re considered an exempt employee?”

This question in detail would take up a 10 page blog filled with ambiguous terms and multiple cross references – but the situation really depends and is dependent on different factors.    

In simpler terms – if you have a manager title, work a lot of overtime, and don’t get paid for that overtime – can my BOSS get away with this? It’s a case by case scenario.

It depends on what classification of employment you fall into? – Hourly or manager – Exempt or non-exempt?

Just because you are have a Manger’s title does NOT mean you are an exempt employee and you May qualify for overtime pay under a misclassification of employment.

Key words are “May” and “Misclassification of Employment”

There have been cases even class action lawsuits against employers that have misclassified their employee’s as managers when in fact they are not managers, per se, just for pay.

The differences being a manager or are in the “Duties” performed not in the “Title” assigned when hired. Review your job description to determine if your duties are more of managerial responsibility or non-managerial, and if your duties are not managerial than yes you may be owned some overtime pay.   

What you actually do during working hours is what classifies you as exempt versus non-exempt or hourly versus manager.

If you suspect you may qualify for overtime pay but are exempt by title, there is a test to determine if you are a manager under duties or title.

California uses a quantitative asking whether more than 50% of employee’s duties are administrative, this favors the employee and is simple to prove and understand.

Under federal law the test is qualitative, taking into account factors such as the importance of the exempt duties to the job, the amount of time spent on them, the employee's freedom from direct supervision, and differences between the employee's pay and that of hourly workers. This federal test favors employers and is ambiguous and lengthy and an uphill battle.   

So Yes and No, “Can a manager be paid overtime even if they’re considered an exempt employee?” Best advice thought; Get a good lawyer to help you figure this out. At the Arroyo Law Firm we handle employment questions such as these and make sure that your best interests are covered.

Give us a call at 714-566-4112 or email us at Arroyofirm@gmail.com for any questions on employment law, Bankruptcy law, and DUI defense.