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Steak ‘n Shake Managers Bring Overtime Claim

ST. LOUIS — Two managers at St. Louis Steak ‘n Shakes filed a putative class action overtime pay lawsuit in Missouri federal court. The managers, who work at the corporately-owned restaurants, claim Steak ‘n Shake Operations misclassified its managers and general managers as exempt, in violation of the Fair Labor Standards Act (FLSA) and Missouri wage laws. They are requesting conditional certification for a collective action under the FLSA for employees at the more than 400 corporately-owned locations, and a class action under state labor laws, for Missouri-based managers. They are also bringing a gender discrimination lawsuit against the company based on the information gathered from the two managers regarding wages.

Managers and Classifications

Managers are often exempt from minimum wage and overtime under both state and federal wage laws based on either the administrative or the executive exemption. In this case, the managers claim neither exemption should apply. The specific requirements for the exemptions may vary under state laws, but the FLSA’s requirements are the minimum for every state in the country. Regardless of which law is applied, the job title of assistant, store, or general “manager,” does not automatically meet the requirements for the exemption.

Under the FLSA’s administrative and executive exemptions, employees, whether given the title of manager or not, must have a primary job duty either managing or relating to the managing of an enterprise, or a department of the enterprise, and receive a salary of at least $455 a week. Both exemptions cover non-manual work. The administrative exemption also requires the employee’s duties include exercising discretion and independent judgment. The executive exemption, on the other hand, requires the employee direct the work of at least two other full-time employees, and maintain the authority to hire or fire. If they do not have the actual authority to hire or fire, then their suggestions must receive weight in the decision making process.

Restaurant Managers

Given the requirements for the FLSA executive and administrative exemptions, restaurant managers generally appear, on paper, to meet the requirements. They likely direct the work of two or more employees, and are responsible for managing the restaurant location. However, there are many instances where the “on paper” duties and responsibilities do not match the actual duties of the manager. For instance, the employees may not be full-time, and their management duties may not actually involve the ability to hire and fire employees, since hiring is not always handled at the local level.

If you are a manager or are classified as exempt, and you believe your job responsibilities fall short of exemption requirements, contact our top-rated team of overtime pay lawyers today. Complete our Free Unpaid Overtime Case Review form or call at (855) 754-2795, and our experienced team will evaluate your situation. Under our No Fee Promise, if we accept your case, you will pay no legal fees or costs unless you receive a settlement.

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