Former Employee Alleges She was Misclassified as Exempt by Urban Outfitters

Urban Outfitters is facing a new wage and hour lawsuit from an Arizona woman alleging she was deliberately misclassified as exempt from minimum wage benefits by the company.

The woman was allegedly misclassified so the company could cut down on labor costs. She alleges that she and other employees were misclassified as exempt, even though they did typical minimum wage duties and scheduling.

Plaintiff Lorenza C. alleges Urban Outfitters failed to pay her for all hours worked or any overtime rates, while Urban Outfitters argues her employment status as exempt from minimum wage. Lorenza argues that the clothing company violated federal labor laws by denying her overtime rates.

According to the wage and hour lawsuit, Lorenza was employed as a Department Manager from May 2013 to August 2013 in Phoenix, Ariz. Lorenza reportedly worked over 40 hours in a single workweek on a regular basis but was not compensated for any overtime.

As a Department Manager, Lorenza was responsible for control and oversight of the daily operations of the store and worked an average of 55 to 60 hours per week. Lorenza alleges the company was continuously aware of her regularly working overtime because the corporation was assigning her the shifts.

Urban Outfitters argues that Lorenza was exempt from overtime pointing out her managerial job title. Even though Lorenza has the job title of manager her occupational duties consisted primarily of manual labor including cleaning, folding clothes, setting up displays, and unloading products from the freight train.

Lorenza further argues that her job duties did not include hiring, firing, or supervising other employees at any point during her time at Urban Outfitters. Lorenza argues she was misclassified as exempt and that the company deliberately did this to cut down on labor costs.

Overview of Non-Exempt or Exempt Eligibility under Federal Labor Laws

Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least $7.25 per hour and then one and one-half that rate if the employee works 40 hours or more in a single workweek.

Non-exempt employees typically work on an hourly basis. In order to be considered exempt from minimum wage under the FLSA, the employee must have the job title and responsibilities of at least a manager or supervisor.

This means the employee must have a certain level of authority to take independent action for activities such as hiring, firing, and supervising other employees. In addition, exempt employees must earn over $23,600 per year or $455 per week, in order to meet federal requirements.

It is important to note that employment misclassification is one of the most common violations of the FLSA, with companies allegedly doing this to cut down on labor costs. By declaring an employee as exempt a company can avoid paying minimum wage rates, healthcare, and other costs associated with employment operations.

Lorenza alleges she was misclassified as exempt and is filing this wage and hour lawsuit to recover compensation for all missing wages and overtime.

This Wage and Hour Lawsuit is Case No. 2:17-cv-04060-ESW, in the U.S. District Court for the District of Arizona.

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