SAN FRANCISCO — A three-judge Ninth Circuit Court of Appeals panel reversed the decision of the lower court recently, allowing AutoZone store managers to continue with their overtime class action lawsuit. The lawsuit was initially filed in 2010 in Arizona federal court. In 2012, the lower court granted summary judgment, which is a judgment made without a trial if there is no dispute over material facts of the case, in favor of AutoZone.
The Appeals Court panel believed there was still considerable factual dispute over the managers’ duties, frequency of nonexempt duties, and managerial authority that only a trial could answer. The panel also questioned the level of supervision the store managers possessed. With the panel’s reversal of summary judgment, the AutoZone managers may proceed with their claims that the company misclassified store managers as exempt and failed to pay proper overtime wages.
The Store Managers’ Duties
There are an estimated 1,400 potential class members for this lawsuit, which includes all AutoZone store managers, outside of California, employed from May 2008 to May 2011.The main dispute in the overtime lawsuit is whether the AutoZone’s store managers’ duties were primarily managerial in nature, and exempt, or more like those of nonexempt employees. The store managers claim they had some authority to hire and fire employees and they were responsible for some management and direction of staff, but their main responsibilities included customer service and manual labor activities. They also claim the district managers closely supervised the store managers and had more authority in hiring and firing and in decision making. They believe that, because district supervisors closely monitored their activities and had greater authority, store managers’ duties did not meet the Fair Labor Standards Act (FLSA) exempt status requirements.
Additionally, the store managers contend they received as much as or less than nonexempt employees when comparing pay and hours worked. The store managers claim they regularly worked more than 50 hours a week. Their exempt status, however, prevented them from receiving overtime. The lawsuit claims the misclassification and the underpayment are intentional on AutoZone’s part to avoid paying proper wages.
Classifications
Misclassification can have significant financial effects on both employees and employers. Job classifications must frequently be done on a case by case basis because they are very fact specific, as in this case. Job titles may be misleading because managers do not have the same job duties in all stores, locations, or companies. Exempt classifications for managers require managers to perform managerial duties for the majority of their time. However, there is no single definition for what the “majority” of their time means, particularly in customer based industries.
Determining if you have been misclassified as exempt can be complicated. Contact our knowledgeable team of overtime pay lawyers today at (855) 754-2795 or complete the Free Unpaid Overtime Case Review form and our experienced legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.