Correctly Classify Assistant Store Managers

SHRM.org

Jeffrey H. Ruzal, a Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s New York office, Shira M. Blank and Christopher Lech, Associates in the Employment, Labor & Workforce Management and Litigation & Business Disputes practices, in the firm’s New York office, co-authored an article in SHRM.org, titled “Correctly Classify Assistant Store Managers.”

Following is an excerpt:

Many retail employers incorrectly assume that simply because an employee has the word “manager” in his or her job title, he or she may be classified as exempt from federal and state overtime rules and regulations. The misclassification of assistant store managers in the retail industry is pervasive and the potential consequences can be costly. Employees misclassified as exempt may be entitled to back overtime wages and an amount equal to the unpaid back overtime wages in liquidated damages for a two- or three-year period, depending on whether the violation is found to be “willful,” as well as the employee’s reasonable attorney’s fees. In order to avoid such claims, retail employers must review the type of work that assistant store managers are performing to determine whether the employees qualify for the exemption.