A manager at All Seasons Car Wash & Lube in Philadelphia was willfully misclassified as exempt from overtime according to a lawsuit filed in Pennsylvania federal court.
The lawsuit claims that the manager was compensated on an hourly basis throughout his employment at the car wash. Managers who earn an hourly wage versus a salary are entitled to overtime pay of one and one-half times the hourly rate of pay after 40 hours worked during a workweek under the federal Fair Labor Standards Act and Pennsylvania wage laws. The manager routinely worked approximately 67.5 hours a week, but did not receive overtime pay for the hours worked over 40.
This case points out a common mistake made by employers when it comes to paying overtime. Managers are generally exempt only if they are paid a salary and fall within one of three narrowly defined “white collar” exemptions: professional, administrative, or executive.
