Discount Tire faces a wage and hour lawsuit alleging that a wrongful overtime exemption classification resulted in unpaid wages.
Plaintiff John U. recently filed a lawsuit against The Reinalt-Thomas Corporation, which operates as Discount Tire, alleging that the company wrongfully classified him with an overtime exemption, resulting in unpaid overtime wages.
According to his complaint, John worked for Discount Tire as an assistant manager for six years, with his employment ending in April 2018.
As an assistant manager, his duties were allegedly “almost indistinguishable” from those of tire technicians. Both he and tire technicians were responsible for removing, servicing, and installing tires. His only management responsibility was reportedly being provided a set of keys so he could open or close the store when he needed to. John claims he was not responsible for other management duties such as hiring, promoting, or firing employees.
During his time at Discount Tire, John was allegedly scheduled for 45 hours a week but often worked far more hours than scheduled in order to provide excellent customer service and not turn away consumers.
“In order to provide excellent customer service and meet the needs of Discount Tire’s business, [John] routinely worked 48-52 hours per week, and would frequently work 65 to 70 hours each week during busier times of year,” the overtime exemption lawsuit claims.
However, John was reportedly not paid overtime pay which he argues that he was entitled to based on his work responsibilities and payment conditions. John was reportedly paid on a pseudo-salary basis. He received $750 a week assuming he worked his scheduled 45 hours. If he worked less than 45 hours a week his pay was subject to change. “In other words, [John] was not paid a ‘salary’ if his hours fell below his scheduled hours, meaning his pay was not salary based,” the complaint argues.
The lawsuit claims that John’s payment does not qualify as a salary under the Fair Labor Standard Act because he was not paid a salary if he worked less than his scheduled hours. Additionally, the “salary” payment did not meet minimum salary requirements set by the Department of Labor which require employees to earn at least $913 a week to be exempt from overtime.
“Although the payment of half-time for overtime hours is permissible if the employee otherwise receives a fixed salary for a fluctuating workweek, that provision was misapplied to [John] because he only received his salary when his work hours ‘fluctuated’ above 45 hours per week, but his pay was reduced if his work hours ‘fluctuated’ below 45 hours per week,” the overtime exemption lawsuit claims. “[John] was thus misclassified a ‘salaried’ worker.”
John argues that these distinctions mean he should not have been subject to overtime exemption. His lawsuit seeks damages for lost wages and lost use of money owed to him in addition to liquidated damages in an amount equal to his unpaid wages, court costs, and attorneys’ fees.
The Overtime Exemption Lawsuit is Case No. 1:18-cv-00293-EJL in the United States District Court for the District of Idaho.
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