StopNShopToday, Inc., a family-owned corporation, is a small business that operates 15 combination convenience store/gas station locations. All administrative functions are managed at its corporate office and each retail location is overseen by a store manager. In addition to a store manager, each retail location employees a number of hourly employees as cashiers and at least one assistant manager. The store manager has decision rights on all talent related matters including autonomy in filling assistant manager vacancies by either recruiting externally or promoting a cashier. Assistant managers are the pipeline talent for new store manager roles and participate in a 1-2 year management ...view middle of the document...
The white collar overtime exemption salary level short test was first implemented in 1933 to delineate the bosses from the workers and revised in 1940 as a means of thwarting employer attempts at misclassifying nonexempt jobs with titles reserved for exempt level employees to avoid paying overtime (Eisenbrey and Bernstein, 2014). FLSA asserts that job titles have little bearing on actual job duties. Through the years, the salary level test threshold has increased from its initial $35 per week to $455 per week ($23,660 annually) effective August 23, 2004 (DOL WHD: FairPay, n.d). Salaried employees may be paid weekly, bi-weekly, or monthly schedule.
FLSA EXEMPTION CLASSIFICATIONS
There are three white collar exempt classifications under FLSA; administrative, professional, executive. Each classification has distinct requirements which must be met in order to qualify under the classification type as published in Title 29 of the Code of Federal Regulations (CFR), section 541(2013). To qualify under the administrative exemption, the duties performed must be directly related to assisting with running or servicing the business in areas such as finance, purchasing, marketing, HR, legal, consulting, etc. Duties performed within the professional exemption class require advanced knowledge garnered through extensive education resulting in advanced degrees in science and learning. However, the executive exemption speaks to the role of management which is where the business question for this analysis is focused. The general rule for the executive exemption outlined in 29 CFR 541.100 lists the primary duties as managing a recognized department/ unit of an organization; regularly oversees the work of two or more subordinates; has authority or strong influence with regard to hiring, firing, promotion, and compensation of employees (2013). How do the StopNShop Today assistant manager duties align with federal regulations?
The assistant manager at StopNShop Today dedicates a 70% to 80% of his/her weekly time performing cashier functions and the remaining time engaged in the following directly related managerial duties, under the supervision of the store manager:
• compiling the store's weekly employee shift schedule
• filling scheduling holes
• interviewing cashier applicants
• making recommendations for hiring
• totaling each shift's cash register receipts
• observing the duties and activities of the store manager
Section 541.700 of the CFR defines primary duty as the “major, or most important duty” performed by the employee, realizing that the amount of time spent performing these tasks does not necessarily change the exempt level status (29 CFR, 2013). This particular section of the Code specifically calls out assistant managers who perform exempt level work, addressing the significance of the tasks to the overall operations of the business. Generating a work schedule for store employees and filling scheduling holes is important to the...