Steak ‘n Shake Working Managers Win Overtime

When does a “manager” get overtime pay? Some managers sit in a back office and supervise, without getting their hands dirty. Other “managers” are working supervisors out on the floor with the same job duties as the workers they supervise. Who is exempt from overtime pay?

On May 10, 2019, a judge ordered Steak ‘n Shake to pay $7.7 million in back pay and liquidated damages for misclassifying store managers as exempt employees and failing to pay overtime.

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How Many Managers Does it Take to Clean a Towel?

Crown Linen LLC – based in Orlando, Florida – will pay $60,863 in back wages to 15 employees for violations of the overtime and record keeping provisions of the Fair Labor Standards Act (FLSA).

Misclassified Managers Denied Overtime.

Crown Linen, LLC. offers commercial laundry services to hotel clients. The employer incorrectly considered two groups of employees as exempt from the overtime requirements as managers under the FLSA. This misclassification of the jobs as overtime exempt resulted in the employer paying flat weekly salaries without regard to the number of hours worked. This practice resulted in violations when these employees worked more than 40 hours per week and were not paid overtime. The employer also failed to maintain required records of the number of hours employees worked.

Employees not paid overtime because they are miss-classified as “managers” may be owed substantial amounts of overtime.

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