When Managers Don’t Really Manage
Lately we have had a few managers contact the firm to ask if they are entitled to overtime pay. Here is the answer.
First, someone who is truly a manager is not entitled to overtime pay – they are exempt from the law that requires overtime pay.
The real question then is when is a manager really a manager? Companies routinely label people as managers just to avoid paying them overtime. So be careful – you might be entitled to overtime pay even if your title includes the word “manager.” Here is the rule. A person is truly a manager if:
1. You are paid at least $23,660 a year or $455 per week
2. Your main job is to manage some part of the company
3. You supervise/manage at least two full-time employees
4. You actually do the hiring and firing of the people you manage or play a major role in those decisions.
If any one of the above is missing from your job, then you are not a manager and you are therefore entitled to overtime. If you have the title of manager, but do not meet the criteria above, you may have the right to recover unpaid overtime.
