FLSA Misclassification and Overtime in Retail Jobs

C.R. Wright of Fisher & Phillips LLP recently posted this useful article on Fair Labor Standards Act litigation in retail jobs.  The article notes a huge increase in overtime cases under the Fair Labor Standards Act and state wage and hour laws.  (Indeed, many such cases have been filed here in Washington, including one that was the subject of a recent Washington Supreme Court opinion.)  Mr. Wright discusses class action cases against Starbucks, Home Depot, Family Dollar, Radio Shack, and convenience stores challenging whether retail managers are properly treated as exempt from overtime.  He argues that companies have paid in past cases to avoid legal fees and uncertain results but that some courts are beginning to side with retailers in such cases.  Nevertheless, it is recommended that companies closely monitor whether employees are properly considered exempt from the FLSA as well as the duties and number of employees supervised by exempt employees.