Legal Question in Employment Law in Pennsylvania

Exempt vs. Nonexempt question

I manage the cafe dept. (like a Starbucks) of a national chain bookstore. I am classified as exempt & receive a salary that is bonus eligible. I am not allowed to hire or fire and am required to schedule myself as coverage (cafe server) for my entire 40 hours per week. Any admin work I need to do I am expected to work beyond my 40 hours or take it home, either way I'm not additionally compensated. This is the common practice at all our district stores. Because of the vast amount of time I spend actively working as a server, I am concerned that my exempt status is incorrect. I feel like I have 2 full-time jobs, but only 1 paycheck!


Asked on 8/22/07, 2:30 pm

5 Answers from Attorneys

Maxwell S. Kennerly The Beasley Firm

Re: Exempt vs. Nonexempt question

Without knowing more, you don't sound like a bona fide administrator to me. (See http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17c_administrative.htm ). You are thus entitled to overtime for all 40+ hours.

You can file a complaint with the Wage and Hour division of the Department of Labor, or with the similar bureaus of the State of Pennsylvania.

It sounds like you may also have a latent class action, given the "common practice" of the above. As such, you probably want to talk to a class action and/or employment attorney about your options. Many will do such an initial review/consultation for free.

Keep in mind that there are multiple statutes of limitations at play -- so you should talk to an attorney as soon as possible.

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Answered on 8/22/07, 2:48 pm
Daniel Cevallos Cevallos & Wong, LLP

Re: Exempt vs. Nonexempt question

Hello:

I was surprised to receive your question, as it sounds like a compelling case of FLSA and other wage violation. I have been handling these FLSA cases as they have become really hot areas of litigation. Please call my office or e-mail me as soon as possible. There is no charge whatsoever, and you can check out my website for information about me. This sounds like an FLSA case to me so far, and we can pursue it on a contingent basis--which means no cost unless you win. Please call or e-mail as soon as possible.

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Answered on 8/22/07, 5:03 pm
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Exempt vs. Nonexempt question

You asked whether you are entitled to be paid on an hourly (non-exempt) basis.

Recent ruling regarding the Fair Labor Standards Act have caused a large number of companies to review their policies regarding exempt employees. Some companies have not made any changes, other have not looked and some just don't care. Overwhelmingly though companies want to keep their employees happy.

In your case it sounds like a classic situation where the employer wants to have the best of both worlds. The FLSA and rulings under the FLSA are pretty clear that a persons actual role is more important than the title and nominal duties of a position. Many creative and professional persons are exempt and those classes do not apply to you. But you seem to have little control over your schedule and your administrative duties are more administrative than managerial.

You need to speak with an attorney about this matter right away. There are time limits for bringing such claims. It may even be the case that there are employees throughout your company that are in a similar situation.

An attorney can guide you to safely bring a claim against the employer. A good attorney will find out what goals you desire. This can include creating a company-wide change or simply getting a change applicable you and compensation for previous uncompensated effort.

I have been working on corporate compliance matters for years, from both sides and can certainly help in your particular situation. Call me if you would like to follow up.

Regards,

Roger

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Answered on 8/22/07, 5:53 pm
Daniel Cevallos Cevallos & Wong, LLP

Re: Exempt vs. Nonexempt question

(Response II)

I thought I should give you a brief explanation of what the FLSA is, separate from my other e-mail below. We can talk more about it when we speak on the telephone:

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $5.85 per hour effective July 24, 2007; $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009. Overtime pay at a rate of not less than one and one-half times their regular rates of pay is required after 40 hours of work in a workweek.

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Answered on 8/22/07, 5:54 pm
Daniel Cevallos Cevallos & Wong, LLP

Re: Exempt vs. Nonexempt question

Hello. I wanted to follow up with you. I hope that you will get in touch soon so that you can pursue your claim before your statute of limitations approaches. Feel free to call at 267.639.3105, or e-mail at [email protected]

-Danny

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Answered on 8/24/07, 7:42 pm


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