Urgent ... Easy .. Question re: Exempt and Minimum Wage

Hello All,

I have a question that has come to me from a fried of mine who is Restaurant Assitant Manager in TX. I am wondering if he is being paid legally. Currently he has an exempt status at a rate of $25000 per year. He is required to work 50+ hours per week. (Required to clock in and out) Currently he is working 80+. Is he required to receive at least minimum wage?

For example:
40 hours x $5.15 = $206.00
40 OT hours x $7.73 = $309.20
Total = $515.20 which is more than his salary of $480.77

Is this okay?

I also question his exempt status. He has been told explicitly he does NOT have the authority to hire/fire or write anyone up. He performs essentially the same duties as all the other workers, except he has access to the safe, and large sums of money.

Can ya'll please give me your opinions?

Thanks,
Leslie

Comments

  • 16 Comments sorted by Votes Date Added

  • Borntexan, it does sound suspect. Our store's bookkeepers have access to the safe and large amounts of money, but do not make any independent decisions - they are non-exempt. Our store assistant manager's are often able to hire, usually not fire, and discipline. However, with so many changes in our company that limit decision making for store management, their status is also coming into question. But your assistants definitely do not sound exempt to me.

    Elizabeth
  • If you want to test his true status, I would look at his duties rather than salary. He's being paid 25K for the job...that's about $480.77 a week no matter how many hours it takes....WAY above minimum.
  • Hi Leslie - as we've already determined in another thread - Texas follows the federal guidelines for wages - this link [url]http://www.dol.gov/dol/compliance/comp-flsa.htm[/url] will help you and your friend in your research. Without knowing how the company operates & really only hearing about the employee side - it's hard to definitively say whether there's a problem or not. However, there's enough red flags going off for me that it would probably benefit your friend to see an attorney. I know the initial costs could be a couple of hundred dollars - but it could be worth it to your friend if the attorney too believes there's a problem. As an attorney friend of mine said, "Mandi, Wage and Hours Laws are the easiest cases to win, because in these cases, the law is pretty black and white." Good luck!
  • mwild has proven herself an excellent web researcher once agian. Follow the link for some good information. Your friend can contact the attorney or go through state agencies with the questions that follow.
  • Excuse me mwild31: This case is so clear to me I would not recommend to hire an attorney. You don't need one, go see the EEOC office and they'll provide the attorney if they think or feel like you have a strong enough case. I dislike recommending an attorney but what is wrong is wrong and the company needs a good HR to help them run their establishments. Sorry to butt in but I could not resists. You are right on otherwise.

    PORK
  • I believe if EEOC investigated this, they would definitely find that this person should be classified as a non-exempt employee. Restaurant "managers" who basically are nothing more than front line workers with a little more responsibility was one reason for the new proposed legislation to streamline and change the FLSA regulations.
  • Hiya Pork! I think going to see the EEOC is a great recommendation! Fortunately(?) I haven't had the pleasure of working with that agency much, so I'm unaware of their scope regarding awarding back wages to the employee. Could you enlighten me? Much appreciated - EAT MORE PORK!
  • RIGHT ON!! NOW WE ARE TALKING GOOD STUFF! I hate EEOC, in fact the GM received a call on Friday because he was away at the Dawg's and the War Eagle pep rally in Alabama, he did not get the call and he fished all day yesterday. The complaint was from a Black male terminated after I investigated a "clock punching routine", in his statement he admitted to bringing his step son 12 years old into work with him and he was allowed to wash trailers with him. I could not validate he did the time card punching but his admission that he had put a child to work on our behalf and on our property got him the AX job!

    EEOC wanted our side of the story, I talked, and provided them with the written statements I had gathered for my investigation. I was shocked to learn later this afternoon that they closed the case file to the cabinet.

    Others have been unrelenting and could not get beyond their on issues with the case and became personal instead of professional. This is Mississippi, and it is no longer a bunch of Red Neck Farmers running the show. Our EEOC offices are pretty much run by government employees that have gotten into the system of government and they grow from there. It does not matter if they have slanted views themselves. They are normally for the minority regardless of the circumstance. Now, I am balanced enough to know right from wrong, and old enough to handle it. When my ees are done wrong, I make sure the wrong is righted. One of my Black Managers told a very large white female that she was just to large to work for us {she was physically to big for the task of "pulling pigs", a birthing process}. She did not hear "to large", she heard "TO FAT" AND THAT IS WHAT THE EEOC HIT US WITH AS A DISCRIMINATION OF A BLACK MANAGER TO A WHITE EE! We comprimized with the investigator and gave her back wages for four months and offered to reconsider an application. She has never re-applied, which tells me she did not want to work she just wanted some money and EEOC fell right in line to help her out. On two other cases I have held my grounds in the face of the EEOC orders to crumble and they have written an authorization to sue, but we have never been suied. I'm still waiting on the Military one to come forward, we put him back to work as a re-hired ee. No back benefits, to which he would have been entitled had he not arranged for a "voluntary quit". He failed to abide by the law in his seperation with us upon being called to active duty, he was therefore terminated. He lied to the EEOC office and they came after us, but we agreed to only re-hire. The legal issues are still out there and we are counting the days to a statue of limitations date and the issue dies.

    Believe me you do not want to get caught in a cross the court battle with EEOC when they smell the BBQ they come a running; normally, you can not win.

    In this case, I see the company screwing the ee by giving him a title but making him do labor work, just so they do not pay O/T. That is wrong and the EEOC will do the dirt work that any ATTORNEY DAWG can do to sniff out the right! The EE does not need an attorney; there are a lot of "event chasers out there making a living at legal work just to get half of the settlement". Well look, what I did for you and you got 50% of something you would never have gotten had I not been here to do the legal work for you.

    EVERYONE OUT THERE SAY, OINK, OINK!!!

    PORK
  • Ok I said it and now the people in the next office are wondering even more about me.
  • So, the EEOC can sue & get back wages payable to the employee?

  • mwild, I know California is different, but the DOL hears wage and hour claims here, not the EEOC.

    Elizabeth
  • PORK - did you type "suied" on purpose or was that a slip? Sounds like your own colorful variance of the piggy-call. x:D

    SUUUUUUUEEEEYYYYYY! (or however you how you spell it!)
  • The DOL has addressed many cases in the past couple of years involving exempt v. nonexempt status in restaurants, usually finding that the employer was improperly classifying nonexempt as exempt. These have ranged from short order cooks to so-called managers who were actually merely walking customers to their tables. The problem has been so extensive that the DOL targeted that industry for particular attention. Just a couple of other thoughts. I strongly agree with those that say that the smell test indicates the classification of this man is improper. To be a manager, you need more than what is given here. Someone might argue an administrative exemption, yet this also seems doubtful. Also, the EEOC has nothing to do with exemption issues in any state. This is the responsibility of the DOL's Wage & Hour Division. Finally, while I am a lawyer, I see no reason to go to a lawyer on such a matter. It is fairly straightforward and this is why the Wage & Hour operates offices throughout the country. Find one and talk to them.
  • MWild: You're not foolin' me x:-). You were setting Pork up with those EEOC questions, knowing a separate DOL division investigates exemption issues. But his litany of experience with EEOC sort of mirrors my own. Our office is supervised out of the Birmingham regional office and they're a bunch of long time government wanna be-litigators whose compasses only point one direction. In honor of my friend Pork, I will also tell you that they have been at 'the government trough' too long and the 'government teat' too long. (for the agriculturally-challenged among you, those are pig terms.

    For the original questioner; yes, this is suspect. I doubt seriously that by any stretch of the rules your friend could be truly exempt. His best bet is to have a good journal of his hours. That will be his best proof of hours worked from which his overtime calculation will be derived when the Feds do that.
  • x:-) I wasn't trying to set Pork up - I was having a blonde moment. I was feeling kind of dumb about not knowing more about the EEOC when San Francisco helped me out. My response of 'we do to' or something to that affect, should have had another response from me of #-o I should have realized our Wage and Hour division must work similar to the services of the EEOC Pork described.
Sign In or Register to comment.