An increasingly more common problem among retail management and those in supervisory roles is that they are apparently being classified as exempt, but the duties they perform say otherwise. Many Texas readers may be familiar with the retail cosmetic giant ULTA. The company is being accused by two of its former store managers in another state of a failure to pay overtime.
ULTA classifies employees who stock shelves, clean, and sell to customers as non-exempt. The store managers are classified as exempt, which means they are ineligible for overtime. According to California state law, if exempt employees are performing non-administrative duties beyond a set number of hours, such as those performed by non-exempt workers, they are to be paid overtime.
According to the complaint, the stores are not given an adequate amount of staff hours to run appropriately without putting a burden on management. Because of the shortage of hours, the managers pick up the slack by performing the duties of the non-exempt workers. Allegedly, this causes the managers to not take adequate rest periods, and they are not compensated for working through those rest breaks. They also claim they are not paid overtime for the hours that they work beyond their normal schedule.
Lawyers for the plaintiffs stated that despite the stores doing well financially, ULTA is taking advantage of the hard work being done by the store managers. Current and former similarly situated workers are being encouraged to join the lawsuit. A company's failure to pay overtime when it is warranted can cause undue hardship on Texas workers. Those who believe that they are aggrieved can turn to the law to try to claim the compensation to which they believe to be entitled.
Source: cosmeticsdesign.com, "ULTA faces class action", Deanna Utroske, Sept. 14, 2015