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Sales Manager Overtime Lawsuits: Wage & Hour Laws

Sales Manager Overtime Lawsuits: Wage & Hour Laws

Commonly asked overtime pay law questions about sales managers:

What Is a Sales Manager?

Sales managers — as well as sales directors — plan, direct, or coordinate the actual distribution or movement of a product or service to the customer. Coordinate sales distribution by establishing sales territories, quotas, and goals and establish training programs for sales representatives. Analyze sales statistics gathered by staff to determine sales potential and inventory requirements and monitor the preferences of customers.

What is the Salary Range for Sales Manager?

Depending on the work setting and state, the U.S. Bureau of Labor Statistics (BLS) noted that in 2016, the average amount of money per year that a sales manager earns is about $135,000 per year with 75 percent of the workforce making between $55,000-$168,000 annually.

How Many Sales Managers Are Nationally Employed?

According to the United States Department of Labor, employment estimate and mean wage estimates for sales managers are as follows:

  • Employment: 365,230
  • Employment RSE*: 0.6%
  • Mean Hourly Wage: $64.95
  • Mean Annual Wage: $135,090

*RSE: The relative standard error (RSE) is a measure of the reliability of a survey statistic. The smaller the relative standard error, the more precise the estimate.

According to the United States Department of Labor, the percentile wage estimates for a sales managers is as follows:

  • 10th Percentile: $26.82
  • 25th Percentile: $38.18
  • 50th Percentile (Median): $56.71
  • 75th Percentile: $80.91
  • 90th Percentile: N/A

Where Are Most Sales Managers Employed?

According to the United States Department of Labor, states with the highest employment level of Sales Managers are as follows:

State Employment Employment Per Thousand Jobs Location Quotient Hourly Mean Wage Annual Mean Wage
California 69,180 4.33 1.67 $62.72 $131,450
Illinois 24,150 4.09 1.57 $61.37 $127,650
Texas 22,310 1.90 0.73 $70.62 $146,890
New York 20,170 2.22 0.85 $94.60 $196,770
Georgia 15,460 3.67 1.41 $61.61 $128,140

Sales Managers Overtime Pay Lawsuit News

Ohio Telecom Company Sued for Not Paying Sales Staff Overtime

A former outbound sales employee for Cincinnati Bell recently filed a class action unpaid overtime lawsuit against the telecom company over allegations that the defendant failed to properly calculate the overtime pay rates for workers at the business.

new-york-christmas-window-display-overtime-pay-lawsHoliday Display Salesman Sues Former Employer Over Unpaid Overtime

NEW YORK — A former salesman for a high end Christmas display company recently put some coal in his employer’s stocking when he filed an unpaid overtime lawsuit alleging the New York-based company failed to pay him proper wages.

Read All Sales Managers News on Overtime Pay Cases and Settlements

What are the Laws for Manager Overtime Pay?

Under the Fair Labor Standard Act (FLSA), many employees with the title of “manager” or “supervisor” are entitled to overtime pay. Many companies will try to avoid paying overtime wages by misclassifying employees as FLSA-exempt managers.

To determine whether a manager is entitled to overtime, it is necessary to determine if they are really exempt under the law.  This must be determined on a case-by-case basis. Some key factors to determine whether a manger is entitled to overtime include:

  • Two or more full-time employees report to you for work assignments and oversight of their daily tasks
  • The type work is really being performed regardless of the job description
  • Being docked your pay if you miss time from work. If so, you are not exempt from overtime pay because pay docking is inconsistent with your status as a “salaried” manager or supervisor
  • The percentage of your time managing employees and operations.  Managers must spend at least 80% (in retail and service industries 60%) of their time in management duties. If you spend a large part of your work day performing at the cash register, preparing food orders or filling in for absent non-managers, then you may not be a “true” manager or supervisor and could be due overtime.

Other factors to determine if you are a “true” manager include whether you:

  • Set the schedules of other employees;
  • Make decisions about hiring or firing employees; and
  • Direct the work of at least 2 other full-time employees.

Is a Sales Manager Entitled to Overtime Pay?

Because managers perform essential duties, such as formulating policies, managing daily operations, and planning the use of materials and human resources, they often work far more than 40 hours in a workweek. Many of them are not paid overtime for these excess hours as required under the FLSA. The employer’s failure to pay required overtime to a manager can result in a lawsuit for overtime pay.

There are strict time limitations for filing a claim so it is important that you discuss your case in a timely manner. If you wait too long, you may lose your ability to recover some or all of your back pay. An experienced manager overtime pay attorney can determine whether you are entitled to overtime wages based upon your job description, job duties, rate of pay, and number of hours worked.

Some states have their own overtime pay laws that may be slightly different from the FLSA with respect to overtime pay for managers. An experienced overtime pay attorney can determine whether you are entitled to overtime wages based upon your job description, job duties, rate of pay, and number of hours worked. There are strict time deadlines for filing lawsuits so it is essential that you contact an attorney immediately.

To determine whether you are eligible for filing a wage claim, contact our experienced Manager Overtime Pay Lawyers at (855) 754-2795 for a Free Consultation to discuss your case or complete the Free Unpaid Overtime Case Review Form on this page.

We will discuss your situation and determine if you have a claim. If you are owed unpaid wages, we will represent you under our No Fee Promise, which means there are never any legal fees or costs unless you receive a settlement.

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