The Fair Labor Standards Act and North Carolina’s Wage and Hour Act require overtime to be paid for any hours worked over 40 per week. There are, however, exemptions to these general rules. One of those exemptions is for Executive employees. The executive exemption covers employees typically considered managers. If you believe you are being improperly classified as a manager in an effort to deny you overtime, contact attorney Karl S. Gwaltney at (919) 526-0450.
The executive exemption covers employees typically considered managers. If you believe you are being improperly classified as a manager in an effort to deny you overtime, contact attorney Karl S. Gwaltney at 919.960.1545.
The general rule of the executive exemption states that the employees are exempt from the provisions of the FLSA and NCWAHA if that employee is (a) compensated on a salary basis making more than $455 per week, (b) has primary duties managing an enterprise, (c) customarily and regularly directs the work of two or more other employees, (d) has the authority to hire or fire other employees.
The factor requiring “management of the enterprise” requires that the supervisory tasks performed are not directed by higher management to such a significant degree that they negate the employee’s actual authority. Tasks commonly associated with management include training employees, managing production or sales records, evaluating employees’ performance, disciplining employees, planning work to be done, ensuring plant safety, planning the budget, controlling supply flow, and monitoring or implementing legal compliance measures.
The factor requiring “customarily and regularly directs” the work of two or more employees requires the equivalent of two full-time employees. The determination of an employee’s authority to make status changes generally comes down to a factual finding of whether they actually possess authority to hire, fire, or direct the hiring or firing of other employees. Even if higher management can overrule the employee, if an employer “seriously considers the recommendations,” that may be enough.
Many employers wrongfully deny overtime to employees under this exemption. If your employer denies overtime by claiming you are a “manager,” contact us for a free consultation regarding your rights or submit a confidential new case inquiry here. Maginnis Howard represents clients in unpaid wages and overtime cases throughout the Carolinas from our Raleigh, Charlotte, and Fayetteville offices.
