By Susan G. Fentin, Skoler, Abbott & Presser, P.C
In another of what promises to be a long line of cases in which courts consider whether working managers have been properly classified as exempt from overtime under the Fair Labor Standards Act (FLSA), the U.S. Court of Appeals for the 1st Circuit—which covers Maine, Massachusetts, New Hampshire, and Rhode Island—has ruled that two former Dunkin’ Donuts (DD) managers in Massachusetts can pursue claims that they were improperly classified.
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In its opinion, the 1st Circuit raised some interesting issues that intersect with the Department of Labor’s (DOL) final overtime rules, which raised the threshold salary level for exempt status.
America runs on Dunkin’
Gassan Marzuq worked as a manager at a DD store in Massachusetts from 2007 to 2012, and Lisa Chantre was a manager in another DD store from 2009 until 2010. Both stores are among multiple DD franchises that are owned and operated by three related corporate entities, and John Cadete was president of all three.
When Marzuq and Chantre were hired, they signed manager agreements in which they acknowledged that they were expected to work “no less than a six[-]day, 48[-]hour workweek.” That provision was so important to Cadete that the words “no less than” were set in boldface type in the agreements.
However, because they are required to substitute for crew members who miss their scheduled shifts, managers frequently work more than 48 hours a week. In addition to working the line when crew members call out, the managers have several other responsibilities, including calibrating equipment, handling cash, training and supervising employees, and completing a substantial amount of paperwork. Since the managers spend a large portion of their days serving customers and cleaning, it’s questionable how much of their day is actually spent in a management role.
Marzuq and Chantre filed suit against DD after they were terminated, claiming they had been improperly classified as exempt under the FLSA’s executive exemption and they were entitled to overtime for all the hours they worked over 40 each workweek.