Lawsuit Alleges Speedway Misapplied Assistant Manager Overtime Exemption

Convenience store chain Speedway is facing a new wage and hour lawsuit, which alleges regular and systematic assistant manager overtime exemption.

Law 360 reports that the claim was filed by a former general manager at a Speedway store in Massachusetts, which states that he and other assistant managers were regularly denied overtime despite working 55 hour weeks on a regular basis.

The plaintiff filed the wage and hour lawsuit, which stated that he was only paid an annual salary of $38,000 and was reportedly not paid overtime due to him being allegedly misclassified as exempt from overtime.

The claim further stated that the plaintiff normally worked alone or with one other employee during his shifts, during which he reportedly performs “non managerial tasks.”

He says his regular occupational duties include helping customers, running the cash register, stocking shelves, and cleaning. According to the lawsuit, he worked in a Speedway location in Brockton, Mass. until October 2018.

During his employment, the plaintiff was reportedly denied overtime despite regularly working over 40 hours a week and did not meet exempt requirements under the Fair Labor Standards Act (FLSA).

Overview of Minimum Wage and Overtime Policies

According to the FLSA, employees can only be exempt from minimum wage benefits if they make over $23,600 per year or $455 per week, along with having some kind of authority over other employees.

This authority includes managerial duties like hiring or firing other employees and having control over shift schedules. Employees with the title of “manager” or “assistant manager” do not automatically qualify for exemption, especially if their occupational duties are no different than other employees.

Under current federal minimum wage laws, a non exempt employee is entitled to one and a half times their hourly rate if they work over 40 hours a week or eight hours in a single work week.

It is important to note that Massachusetts overtime law requires overtime rates after 40 hours a week, but does not require the increased rate after the eight hour work day.

In addition, Massachusetts hourly minimum wage rate is $12 per hour, which is significantly higher than the federal minimum wage requirement of $7.25. It is important to note that FLSA states that “bona fide” executives, administrative, or professionals are exempt from overtime if they earn over $80 per week.

Minimum wage employees rely on these wages to pay for daily living expenses like groceries, so it is important for companies to follow federal and state labor laws. Speedway allegedly failed to do this with their wrongful assistant manager overtime exemption.

“Defendant violated the [Fair Labor Standards Act] by failing to pay plaintiff and the [proposed class] overtime compensation for hours worked over 40 per week,” alleges the Speedway lawsuit.

Speedway has approximately 2,740 locations in 22 states, which employees numerous employees at various positions. According to the lawsuit, the proposed class could consist of all salaried general managers employed by the company in the past three years.

The plaintiff and the proposed Class are seeking unspecified damages for the allegedly wrongful assistant manager overtime exemption.

The Speedway Lawsuit is Case No. 1:19-cv-10791, in the U.S. District Court for the District of Massachusetts.

Join a Free Assistant Manager Overtime Pay Lawsuit Investigation

If you work or worked as an assistant manager at a fast-food restaurant, retail store or supermarket and you perform the same duties as the hourly employees, you may have been misclassified as exempt and are owed unpaid overtime pay.

Learn More

This article is not legal advice. It is presented
for informational purposes only.