Exempt Employees: U-Haul Faces $10 Million Liability For Misclassifying Managers

A Los Angeles court has ruled that U-Haul International Inc. improperly classified 480 current and former employees as managers and denied them overtime pay. The court found that U-Haul failed to show the employees spent more than 50% of their time on management duties. The company did meet the other criteria for classifying workers as exempt from overtime, including paying them a salary of at least two times the minimum wage. The workers are now asking for more than $10 million in back overtime pay. U-Haul is considering whether to appeal the ruling.