Are managers entitled to overtime pay?

The Fair Labor Standards Act (FLSA) provides for most employees to be paid a minimum wage and to receive overtime pay if they work more than 40 hours in one work week. Employees that fall into the category of managers or executives are exempt from overtime pay required by this law under what is referred to as the managerial exemption.

FLSA does not look to the title of the position in determining whether or not employees are exempt, but the amount of money earned per week as well as the actual duties performed. Specifically, to have the managerial exemption apply under FLSA, employees must meet the following criteria:

  • Must be paid a salary of at least $455 a week.
  • Have as their primary duty management of the company, department or subdivision of the company.
  • Must be the director of the work for at least two or more full-time employees or employee equivalents.
  • Must have the authority to hire and fire employees or at least be influential in the decision to hire and fire other employees.

The determination that the primary duty of the employee is as a manger is critical to the determination of whether or not he or she meets the managerial exemption. The law is complex and the attorneys at www.samuelandstein.com can assist you. For an overview, “Primary duty” means that managing is the most important duty the employee has.

In order to qualify for the managerial exemption under FLSA, employees must be involved in the following duties:

  • Interviewing job applicants.
  • Contributing to hiring decisions.
  • Involved with training new employees.
  • Contributing to setting and adjusting other employee pay rates and hours of work.
  • Directing and evaluating employees for promotions and pay raises.
  • Making important decisions about how the work is done and what supplies are needed.
  • Actively involved in budgeting, work safety decisions and compliance with the law.

If your employer claims you are exempt and refuses to pay you overtime wages, and you believe you do not fall under the managerial exemption, you may have a claim for back overtime wages. Contact us at 212.563.9884 or visit us on the web at www.samuelandstein.com for a free consultation.

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