More overtime litigation; this time against Hertz for misclassifying managers as exempt
HoustonChronicle.com reports: “Nine suing Hertz alleging overtime not compensated.”
“Nine branch managers who work for the Hertz Corp. in Houston sued the giant rental car agency in federal court this week for allegedly misclassifying them in order to avoid paying overtime.”
“The nine branch managers contend that instead of doing managerial work, which would exempt them from the overtime laws, they spend a ‘significant portion’ of each day doing manual chores such as washing and vacuuming cars, filling them with gas and driving them from one location to another.”
“In the smaller locations, the branch managers also clean the toilets, wash the windows and change the light bulbs, the lawsuit said.”
“The managers also wait on customers and fill out the rental forms, the same duties that employees paid by the hour perform, the suit said.”
The branch managers routinely work more than 40 hours a week, at the equivalent of $16.35 an hour based on a 40-hour week.
“But they have no real managerial responsibilities, according to the lawsuit, such as hiring, firing or approving raises, bonuses or promotions.”
“[J]ust because someone is called a manager doesn’t mean the Labor Department considers the employee exempt from overtime laws.”
Such misclassification is common, and can be very costly, with the possibility of double damages, attorneys’ fees, and costs. Employers should review all job classifications treated as exempt to determine the appropriateness of such classification in light of the “white-collar” exemption rules. Here’s the simplified version of those rules from the DOL’s “Fact Sheet.”
