The way in which workers are classified is essential to determining that they are paid properly. Managers who are paid salaries are expected to be performing duties consistent with their roles. Some Texas companies may attempt to find ways to cut corners by forcing salaried managers to perform the same duties as their hourly counterparts without paying them overtime wages. This could result in a company being accused of a failure to pay overtime.
A former assistant manager for Walmart is accusing the retailer of wage theft. She claims that she was considered a manager in title only, and she did not actually perform any management-related functions. According to her complaint, she and the other assistant managers were doing the same jobs as the hourly workers, while working more than eight hours each day.
The plaintiff claims that Walmart intentionally gave out the title of manager as a way to get around paying overtime, thus, lowering payroll costs. People who are managers are exempt from being paid overtime when they work more than 40 hours. She also alleges that she was denied the ability to take her breaks and lunches.
The woman hopes that her case will achieve class action status so that similarly situated workers who have been labeled as managers since 2011 will also be able to join the lawsuit. Walmart contends that it adheres to state and federal laws when paying its employees, and an investigation is being conducted. To try to eliminate these issues in the future, President Obama issued an executive order to raise the pay threshold so that fewer people could be placed into the management category and be exempt from overtime. Texas workers who feel that they have been denied overtime can file claims against their employers in order to pursue compensation for their lost wages.
Source: thinkprogress.org, "Workers Sue Walmart For Manipulating Employee Classification To Deny Them Overtime Pay", Bryce Covert, April 10, 2015