ATLANTA — A group of former employees who filed a class action against their employer, HMSHost, can move forward with their claim of willful Fair Labor Standards Act (FLSA) violations according to a federal court. The employees, who were assistant managers, alleged that they were willfully misclassified as exempt from overtime. The court denied the company’s motion to dismiss and found the allegations to be well-pled.
Willful Misclassification
The plaintiffs claim that Host International, part of HMSHost which runs concessions in airports and other travel venues around the world, caused its assistant managers to spend extra hours on manual labor by labor budgets that it considers too small to pay overtime-eligible employees for completing those tasks. According to the suit, the company allegedly classified assistant managers as exempt from overtime, though it knew or should have known that those employees were spending much of their time on nonexempt work.
A violation is considered to be “willful” if the employer knew that its conduct violated FLSA or if the employer showed reckless disregard for FLSA’s requirements. For willful violations, FLSA provides for a three-year statute of limitations, and, if proven, liquidated damages are equal to the amount of unpaid wages recovered. Additionally, employers who willfully violate FLSA are subject to a civil monetary penalty of up to $1,000 for each violation.
Misclassified as Executive Employees
The employees in this case were considered by the company as assistant managers that were exempt from FLSA. The executive exemption may apply under FLSA if:
- The employee is compensated on a salary basis at a rate not less than $455 per week
- The employee’s primary duties are managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise
- The employee customarily and regularly direct the work of at least two or more other full-time employees or their equivalent
- The employee has the authority to hire or fire other employees, or their suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees must be given particular weight
For the exemption to apply, merely calling an employee a “manager” is likely insufficient. Job titles do not determine status as an exempt employee. In order for an exemption to apply, an employee’s specific job duties and salary must meet the above-referenced FLSA requirements. Here, the plaintiffs allege that despite their job titles as assistant managers, they were spending their time on work that did not fall within the criteria established by FLSA for the executive employee exemption.
If you or someone you know is misclassified as exempt and therefore not paid overtime as required by FLSA or state laws, you should call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page. Our top rated team of wage lawyers will evaluate your situation to determine your best course of action. We will also determine if it is in your best interest to file a lawsuit against your employer. There are strict time limitations for filing, so it is important that you call our experienced attorneys today.