Assistant managers at Qdoba who were denied overtime pay.
What's the Problem?
It is believed that Qdoba may be misclassifying certain employees as managers to avoid paying overtime to these workers. Even though the Fair Labor Standards Act (FLSA) permits "executives" or managers to work overtime without extra pay, Qdoba assistant managers may not actually fit the definition of an "executive" under the Act and therefore may be entitled to time-and-a-half pay for their overtime hours.
What Are The Exemptions?
The most common exemptions to overtime regulations apply to commissioned sales employees, seasonal workers, executives with specific work responsibilities, and "learned" professionals, such as teachers, lawyers and doctors.
Attorneys are interested in hearing from assistant managers at Qdoba restaurants as part of an investigation into unpaid overtime wages. It is believed that the company may be paying assistant managers as if they were exempt from federal overtime wage provisions, meaning that these workers may not be getting paid for hours worked over 40 in a single workweek. The Fair Labor Standards Act (FLSA) does allow for managers and other executives with certain responsibilities to work overtime without additional pay.
What Does It Mean To Be Misclassified?
The FLSA establishes overtime pay requirements for companies operating in the United States. The Act states that overtime wages should be paid at a rate no less than time-and-a-half a worker’s regular hourly rate and is owed to most employees for hours worked in excess of 40 in a single workweek.
Certain exceptions apply, however, one of which is for “executive, administrative, professional and outside sales employees” on a paid salary. To be truly classified as an “executive” under the FLSA, the employees must have certain responsibilities, including:
Hiring, firing, training, disciplining, and supervising other employees
Planning and controlling the budget
Controlling the flow of materials
Determining the type of equipment that will be used
Other policy-level activities
If an employee has an “executive” job title – such as an assistant manager – but does not have these responsibilities, they should not be considered exempt from overtime under the Act. Some companies continue to incorrectly classify employees, however, cheating them out of due overtime pay.