Being a salaried supervisor entails a lot of additional responsibilities. Or at least you would assume so from the job title. Sometimes an employee is a supervisor in title only, and they are asked to work overtime without pay. Job title inflation is one trick that companies use to make hard-working employees believe that they are exempt from overtime.
Our New York wage and hour lawyers would like to explore exempt misclassification and how it’s used to avoid paying overtime to managers and supervisors. We’ll also discuss your OT pay rights as a worker, how exemptions are actually determined, and filing a lawsuit for unpaid overtime and back pay.
The Bell Law Group is here to help New Yorkers and federal workers seek the compensation they earned and are legally entitled to. To request a free and completely confidential consultation, contact our employment law firm today.
Key Takeaways:
- Job title inflation is a tactic companies use to trick salaried employees into believing that they are not eligible for overtime
- Your job duties rather than job title determine if you are truly exempt from receiving overtime pay
- You cannot be fired for asking about your overtime exempt status, and if you are, you may have a workplace retaliation claim
- If you’re a misclassified supervisor seeking overtime, you can receive back pay by taking legal action
- In addition to overtime back pay, you may also receive liquidated damages that effectively double how much you are awarded
The “Supervisor” Label: Why Your Job Title Doesn’t Determine Overtime Eligibility
Just because you are a supervisor does not mean you are ineligible from overtime. In fact, being a salaried supervisor doesn’t automatically bar you from receiving overtime.
Your job title is just a title. When it comes to overtime eligibility, your job duties and actual role day-to-day will determine whether or not you are exempt from overtime pay.
Common Tactics: The “Front Desk Manager” and “Assistant Supervisor” Scams
Some workers receive a promotion to front desk manager, assistant supervisor, or assistant manager. They get a salary and seem to be exempt from overtime on paper.
Yet these might be promotions in name only, especially if employees do not have any managerial duties. Despite the promotion, these supervisors may primarily focus on the same day-to-day tasks they used to do before the change in job title.
Job title inflation is just one way companies try to dodge their obligation to pay overtime. We encourage you to read our blog post on different ways companies commit wage theft for other examples of worker exploitation.
Can I Get Overtime If I’m a Salaried Manager?
Potentially, yes. Though this depends on criteria under the Fair Labor Standards Act (FLSA) and New York wage laws regarding your pay, how much you earn, and what your job actually involves.
What If My Contract Says I Am an Exempt Supervisor?
Even if your contract states that you are an exempt supervisor, that cannot override FLSA law or New York labor laws. The contract from your employer may have you misclassified as exempt while you are considered nonexempt according to state and federal statutes.
How Does the Law Determine Who Is Exempt from Overtime?
There are three criteria that determine whether you are exempt from overtime as a supervisor or manager:
- The Salary Basis Test: You are paid a salary rather than an hourly rate.
- The Salary Level Test: You earn more than the minimum salary threshold.
- The Duties Test: Your job duties are primarily focused on managerial or supervisor tasks.
Understanding the FLSA Duties Test: Beyond the Manager Title
We’ve alluded to the importance of your actual work duties rather than your job title. Your role as a manager or supervisor may fall under FLSA’s executive overtime exemption if:
- You are paid on a salary basis
- Your primary job duties involve managerial work
- You have at least two full-time employees as direct reports
- You have the power to hire or fire employees; or you have the power to influence hiring, firing, and promotion decisions within the organization
If you do not have any direct reports or are not primarily focused on managerial work, you may be eligible for overtime pay despite your supervisor or manager title.
An Example of a Salaried Supervisor Who Should Be Getting Overtime Pay
Let’s provide an example of exempt misclassification so you get a sense of how supervisors get tricked into working overtime without pay.
You Get a Raise and an Important-Sounding Job Title…
Say that you’ve been working in an admin role in Suffolk County for a few years and you are given a promotion. You go from an hourly wage to a salary and are given a title that makes you sound like the department supervisor or the head of your department.
Since you’re making the equivalent of $1,500 a week as a supervisor thanks to the promotion, you have surpassed the New York salary threshold and seem to be exempt from overtime.
…But You’re Actually Just Doing Even More of the Same Work
However, you notice after a few weeks of putting in additional hours each day that you don’t really have any managerial duties.
You don’t have any direct reports either.
You don’t even have any sway when it comes to hiring decisions for new people in the department you’re supposed to be supervising.
And that is the trick. You’re doing more of the same work for longer hours, but you aren’t getting paid any overtime.
Signs You’ve Been Misclassified as Exempt: Analyzing Your Daily Work Routine
If you feel like you’re a supervisor, manager, or lead in name only, here are a few warning signs that you’ve been duped by job title inflation:
- You’re Doing the Same Work, Just More of It: Despite the new title, you’re just doing more of the same day-to-day tasks as non-managerial team members.
- You Do Not Actually Manage Anyone: You may be a supervisor according to your title, but you do not have at least two direct reports whose work you’re directing.
- You Have No Authority in Your Department: Decisions about hiring, firing, and promotions are made by others without any of your input. You are also not given the discretion to make decisions that affect significant matters at your company.
- You Make Less Than the New York Salary Threshold: You are a salaried manager, but you are making less than the New York salary threshold.
- You’re Getting Disciplined for Missing Blocks of Time: Salaried employees are paid for the value of their contributions. If you face disciplinary actions for missing a half hour to go to a doctor’s appointment or you need an hour or two to address a personal matter, you might be treated more like an hourly employee.
What You Should Do If You Suspect You Are Misclassified as Exempt
If you suspect that you are misclassified as an exempt manager and should receive overtime back pay, you need to gather some supporting evidence. We recommend the following:
- Keep an independent log of all your hours, especially overtime and weekend work
- Note all of your tasks and job duties in your work log, which can help demonstrate a lack of supervisor duties
- Maintain a digital footprint of your work, including log ins, badge swipes, screenshots, and saved work correspondence
- Save all pay stubs and paychecks
- Consult with an employee law attorney about what steps to take next
Can My Employer Fire Me for Asking About My Exempt Overtime Status?
Technically, you cannot be fired for asking about your exempt overtime status. This can be construed as an act of retaliation on the part of your company. You are allowed to ask if you are entitled to overtime without any fear of reprisal.
However, New York is an at-will state, meaning that a company can fire an employee at any time and for no reason. Despite legal protections against retaliation, a company may claim that a worker was not living up to expectations or had issues with performance, and that these issues contributed to termination.
If you were laid off for inquiring about unpaid overtime, The Bell Law Group can help you take legal action.
Damages and Recovery: How to Calculate Back Pay and Liquidated Damages
Misclassified supervisors can seek compensation for unpaid overtime.
Calculating Unpaid Overtime
When calculating unpaid overtime, the math typically looks at:
- The equivalent hourly rate based on a supervisor’s salary
- The overtime rate of the employee (the equivalent hourly rate × 1.5)
- The number of overtime hours per week (i.e., time worked over 40 hours)
- The number of weeks of overtime
What Are Liquidated Damages?
In addition to the overtime back pay, misclassified workers may also be entitled to liquidated damages.
Liquidated damages are an additional amount of money awarded on top of any unpaid wages. They are intended to compensate misclassified employees for delays in payment while simultaneously discouraging the employer from continuing to violate wage and overtime laws.
In New York, liquidated damages are paid at 100% of unpaid wages. In other words, if you are awarded $20,000 in unpaid overtime, you would also receive an additional $20,000 in liquidated damages.
How Far Back Can I Claim Unpaid Overtime for Misclassification?
While the FLSA typically allows two to three years of back pay to be sought, New York allows up to six years of back pay. This is in line with the statute of limitations to file a labor-related legal action per New York Labor Law (NYLL) § 198(3).
Six years is a long time, but it’s best to speak with a New York employment law attorney as soon as possible.
Overtime disputes can be complicated, and you should not go it alone against your employer. Hiring an attorney gives you the best chance at securing overtime back pay as well as additional compensation for additional difficulties you’ve been forced to endure because of misclassification.
Why Overworked Supervisors Trust The Bell Law Group
Founded in 2002, The Bell Law Group has a history of fighting for people who’ve been overworked and underpaid. Our employee rights attorneys will fight for New Yorkers who simply want fair wages for honest work. We are ready to hold companies accountable for taking advantage of you and your work ethic.
We Focus on Employment Law
The Bell Law Group believes in supporting workers in New York and federal employees across the nation. If you need legal help getting overtime back pay or have been the target of workplace discrimination or sexual harassment, our attorneys are ready to be your advocates. We can hold toxic workplaces and unethical bosses accountable.
Our Lawyers Have Over 100 Years of Combined Experience
Experience matters in employment law. Our employment lawyers have more than a century of combined experience representing federal employees as well as workers in Nassau County, Suffolk Counties, and New York City.
We Have a Record of Fighting for Workers
We’re proud of our case results, which speak to our passion for workers’ rights. We’ve secured a $300,000 settlement for a misclassified New York employee who was never paid overtime. If you’re worried about being fired for asserting your rights, know that we’ve also secured a $1 million resolution in a workplace retaliation case.
We Offer Free and Confidential Consultations
You may be worried about the cost of meeting with a lawyer and potentially jeopardizing your career. The Bell Law Group offers free and completely confidential consultations. That means no upfront fees. Any details we discuss will be private, and used to honestly assess your case and its merit.
Contact The Bell Law Group Today for a Free Case Review
If you’ve been misclassified as a manager and need help filing an unpaid overtime lawsuit, The Bell Law Group is on your side. We’ll determine if you have a viable case and determine the best path forward to get the OT pay you’ve earned. For a free and confidential case evaluation, contact The Bell Law Group online.
