Do Managers and Supervisors Qualify for Overtime Pay?

If you’re a manager or supervisor, do you believe you qualify for overtime pay?

If you believe your title alone makes you exempt, you may be mistaken. Even if you are a manager or a supervisor, you may be eligible for overtime benefits if you make under a certain amount and perform certain work functions.

Does Having the Title Assistant Manager Automatically Disqualify Me from Overtime Pay?

No, it does not. The Fair Labor Standards Act (FLSA) defines employees as either exempt, which means they do not qualify for overtime pay, or non-exempt, which means they are eligible for overtime pay. The category a certain job position falls under depends upon the duties performed by the person in that job, not by the job title.

Does My Level of Pay Matter When it Comes to Qualifying for Overtime Pay?

Yes. According to FLSA regulations, you must make under $684 per week or $35,568 to qualify for overtime pay. This regulation was set in 2020. Previously, only those workers who made less than $455 per week or $23,660 per year qualified for overtime pay under the federal law. Under the new regulations, an additional 1.3 million more workers qualify for overtime pay.

Do States Have Overtime Standards That Differ From Federal Regulations?

States also have their own overtime pay threshold, which may differ from the federal threshold. It is important for workers to understand their state laws, because they may quality for overtime, though they may not expect it. Depending on which state you are in, you may be entitled to overtime pay even if you make more than the federal threshold would allow. California, New York, Pennsylvania, Massachusetts, Michigan and Washington have recently increased their overtime threshold in order to better protect workers, including those who may be classified as managers and are required to work more than 40 hours a week.

Washington has increased its overtime threshold drastically — from $13,000 annually to $83,400 annually. Other states have taken more conservative approaches to updating overtime thresholds, but are taking steps that may include more workers nonetheless. Experts explain that states may be updating their overtime thresholds in an effort to catch up to inflation that has occurred.

Now, as inflation has risen, more and more workers have been pushed out of overtime and the financial benefits that come with it. Even though the federal government has raised its standards, many workers are still working for relatively low wages without being able to receive overtime. Unfortunately, some businesses may have taken advantage of the disparity between inflation and overtime thresholds in order to get the most work out of employees as possible, without paying them costly overtime.

What is an Example of the Type of Duties That I Should Have to be Considered a Non-Exempt Employee Who Receives Overtime Pay?

If you are a shift supervisor who oversees the work of others, but continues to perform non-exempt activities such as ringing up customers at the register or making drinks or prepping food alongside other hourly workers, you should still be considered non-exempt and be eligible for overtime pay.

How is Overtime Pay Different from Regular Pay?

Overtime pay is at least one and one-half times the regular rate of pay for hours worked in excess of 40 per workweek, according to the Department of Labor.

Who is Most Likely an Exempt Employee?

Senior management, corporate executives, company owners, company directors and similar white-collar executives are oftentimes exempt employees. Managers and supervisors who determine how work is performed, set and oversee the budget of the business, approve employee pay levels, and assist in hiring new employees are often exempt employees, too, which means they will not qualify for overtime pay.

Is Legal Assistance Available if I Believe I am Illegally Categorized as an Exempt Employee?

Yes. Employers are sued throughout the U.S. regarding allegations they have misclassified employees who should receive overtime pay. In some cases, the employers convicted of misclassification have had to pay tens of thousands of dollars in legal and lawyer’s fees for an employee who is owed less than $7,000 in back pay.

Is There a Statute of Limitations on Collecting Owed Back Wages?

Yes, the FLSA sets a two-year statute of limitations on the recovery of back wages and liquidated damages, but a three-year statute of limitations is in effect when businesses commit willful violations of the law.  Those who fall under the statute are eligible to file lawsuits to obtain monies owed them, like that filed against Steak ‘N Shake in Spring 2019.

What if My Employer Retaliates Against Me?

Employees cannot be discriminated against or fired because they have filed complaints or provided information regarding FLSA violations at the work place. If the employee is a victim of any type of adverse action, the employee may file a lawsuit for reinstatement of the job, payment of lost wages and damages.

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.

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