The difference in compensation between nonexempt and exempt employees can be substantial, and employers who miscategorize workers to avoid paying overtime and benefits are breaking the law.
Labor costs including minimum wages, overtime compensation, employee leave, and unemployment insurance can be substantial expenses for employer, and reducing or avoiding these costs provides an incentive for many employers to circumvent applicable state and federal wage statutes by misclassifying employees:
- As exempt managers or assistant managers, despite the fact that their jobs responsibilities are the same as the workers who report to them
- According to certain “white collar” exceptions, even though their positions don’t require the discretion and independent judgment at the center of those exceptions
- As independent contractors and interns
Several class action lawsuits involving these kinds of issues have been brought and successfully resolved by a variety of wage abuse victims:
- Avis and Budget Car Rental managers
- Burger King coaches
- Costco managers
- Family Dollar Stores managers
- FedEx truck drivers
- Fox Searchlight Pictures interns
- Haliburton field service representatives and specialists
- Kelly Services call center agents
- S. Department of Veterans Affairs assistant canteen chiefs
- Toys “R” Us and Babies “R” Us assistant store managers
- Uber and Lyft drivers
- UBS client adviser associates
- Verizon Communications supervisors
If you suspect that your employer has misclassified your job, denying you the overtime pay or benefits to which you are entitled, you need to act now to protect your right to a recovery. The law gives you only a limited amount of time to pursue your claim.