FLSA Overtime Deal Highlights Worker Classification Priorities

Law360 (August 14, 2019, 4:09 PM EDT) -- A recently approved $4.6 million settlement serves as a cautionary tale for employers that may expect managers to chip in with day-to-day tasks including customer service and manual labor. The plaintiffs — assistant managers at certain franchise locations of Panera Bread — brought a class and collective action lawsuit alleging failure to pay overtime under the Fair Labor Standards Act.[1]

The defendant, Panera Bread franchisee Covelli Enterprises Inc., treated its assistant managers as “exempt” from overtime under the executive exemption to the FLSA.

For that exemption to apply, the position must meet the salary basis test[2] and satisfy the executive duties...

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