Assistant managers: Exempt from OT?
June 16, 2008 by Sam NarisiPosted in: In this week's e-newsletter, Latest News & Views, Overtime, Training
Under the Fair Labor Standards Act, managers are often exempt from overtime pay. But watch out for the common mistake of lumping assistant managers in with them.
Often, the mistake is the result of paying more attention to a job title than someone’s actual job duties. Even when an employee is called a “manager,” he or she isn’t automatically exempt, since managerial jobs can often involve a lot of non-managerial duties, like clerical work or physical labor.
Assistant managers have to meet the same exemption criteria as managers – that is, their primary duty is managing the department, they’ve got at least two full-time employees (or an equivalent number of part-timers) working under them, and they have the authority to hire and fire, or at least significant pull when it comes to personnel decisions.
Whether or not an assistant meets the exempt standard will vary from employee to employee. Some managers, especially in large departments, may share enough authority to make the assistant exempt. In other cases, the manager will be very hands-on, so that the assistant’s primary duty is just to make sure the manager’s decisions get carried out. Employees in that position are most likely nonexempt.
Jobs need to be reviewed on an individual basis to see if the exemption applies. If a position does have enough managerial authority to qualify for an exemption, those duties should be added to the job description to clear up confusion and provide documented evidence if a complaint about unpaid overtime comes up.
Tags: administrative exemption, assistant manager, FLSA, overtime
June 18th, 2008 at 9:26 pm
I am charge nurse for evening shift, but all I do is assign 2 nurses what unit they work, I sometime report to DON any events, but I take care of 3 units myself each evening. I work 16 hours a week overtime, but have never been paid overtime, HR states I have exempt status. What to do?
June 19th, 2008 at 8:48 am
Where is the best spot to find out definitive guidleines on classifying someone as Exempt or Not Exempt? This has always been a sticky point for some of our technicians (field engineers). Some items I have read would indicate they are exempt and some would say they are not. I am looking for something to truly rely on.
June 20th, 2008 at 8:28 am
Yankee Kid,
In my opinion, the best source is the Department of Labor’s Web site (dol.gov). A brief document is available here:
http://www.dol.gov/ESA/regs/compliance/whd/fairpay/fs17a_overview.pdf
It’s not perfect, since these cases are pretty fact-specific, but the DOL will give you a good idea.
Hope that helps,
Sam Narisi
June 20th, 2008 at 8:37 am
Martha,
Overtime case are very fact specific, so it’s impossible to give a definite answer. One thing courts have made clear is that even when an employee spends a lot of his or her time on non-managerial duties, he or she may still be considered exempt if the “primary reason” for the job is management.
You can read more about OT exemptions on the Department of Labor’s Web site:
http://www.dol.gov/ESA/regs/compliance/whd/fairpay/fs17a_overview.pdf
Sam Narisi
Editor
HRLegalNews
September 21st, 2008 at 9:44 pm
I am the IT manager for a division which includes the main facility and three branches. I do not have a staff. A department of one. My duties include maintaining the network, installing equipment such as computers, routers, scanners, installing cable, printers and their maintenance, installing software, fixing computers, maintain the telephone system, and the list goes on. I order supplies, new equipment, etc…but these purchases are all scrutinized and approved by the division manager. I am classified as exempt. My typical week is anywhere from 50-70 hrs./week. I am called upon 24/7 on a regular basis, including during vacations. Am I really exempt?