News Notes: Classification Mistakes Prove Costly For Employers

Several large employers have recently run into expensive problems over the practice of handing out assistant manager titles, allegedly to avoid paying overtime to employees who perform largely the same work as nonexempt personnel. Workers are calling such tactics unfair labor practices and are suing for back overtime pay and damages. Two such cases are pending against Wal-Mart and Taco Bell. Other misclassification suits have reportedly been settled for $11.3 million by Mervyn’s and $7.5 million by Ross Dress for Less. Note that exempt managerial employees generally must supervise two or more workers and spend at least 50% of their time on management duties.