Two lawsuits charge California employers with misclassifying workers as exempt from overtime requirements. In one case, Denny’s is accused of failing to pay overtime to 1,500 managers. The suit alleges Denny’s understaffed its restaurants, causing managers to spend more than half their time performing nonmanagerial tasks such as serving food. Denny’s says its compensation system is standard in the restaurant industry and it complies with the law. In the other case, the Automobile Club of Southern California is being sued for allegedly failing to pay overtime to 650 sales employees. The AAA affiliate contends its sales force was correctly classified as exempt from overtime.
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