Many Michigan employees mistakenly believe a salary automatically prevents them from receiving overtime pay. However, an employee’s right to overtime in Michigan depends on their specific job duties under federal and state wage laws, not solely on their pay plan.
How job duties decide overtime rights
The Fair Labor Standards Act (FLSA), a federal law, sets the national standard for overtime pay, which Michigan law follows. It requires employers to pay non-exempt workers one-and-a-half times their normal rate for hours worked over 40 in a week. A worker’s status as “exempt” or “non-exempt” is the deciding factor for this right.
This status does not depend on a job title or salary. Instead, this status depends on a “duties test” that examines the actual tasks a worker performs daily. Understanding what these tests involve is the first step for any salaried worker.
The common exemption tests for managers
For most mid-level managers, the two most common exemptions are the “executive” and “administrative” types. Simply holding a manager title is insufficient; a worker must meet specific rules regarding their duties to qualify for an exemption. For example, the executive exemption usually applies only if the worker meets several rules:
- Main job: Running the business or an official department
- Supervision: Directly supervising the work of two or more full-time workers
- Hiring/firing authority: Having the power to hire or fire other workers, or significantly influencing such decisions
A worker must meet these criteria for the executive exemption. The administrative exemption, however, has different rules. It focuses on office work related to business operations and requires a worker to use independent judgment on significant matters. If a manager’s job does not meet these strict tests, the employer may have wrongly classified that worker.
Signs you might be misclassified as exempt
This error often happens when a salaried worker’s title sounds important, but their daily work does not reflect it. For example, a “shift supervisor” at a factory may spend nearly all their time doing the same production line tasks as the workers they lead. This person may not be exempt, as their main job is production, not management.
Similarly, a “department manager” in a retail store with no real power to hire, fire or make other major company choices might be non-exempt. If you spend most of your work hours on non-management tasks, your pay status may be wrong. These tasks could include:
- Stocking shelves
- Running a cash register
- Performing manual labor
Such duties often indicate misclassification.
The difference between a title and actual duties
Federal and Michigan wage laws focus on the core of a person’s job, not merely the name an employer assigns it. A manager title and a set salary do not automatically eliminate a worker’s right to overtime pay. Instead, the legal review consistently examines the tasks a person performs day to day. For any salaried worker in Michigan, their true job duties determine their rights.
Are you missing out on the overtime pay you’ve earned?
Don’t let a manager title or a fixed salary dictate your worth. If your daily tasks look more like those of the employees you supervise than of true executive management, you may be the victim of misclassification.
Contact Hurwitz Law PLLC today for a confidential case evaluation to review your actual job duties and determine whether you are owed back pay.