Wednesday, March 23, 2011

Fourth Circuit rules Family Dollar store managers FLSA exempt

Family Dollar store managers are a hard working bunch.  They are expected to perform most of the same duties as their subordinates and also manage their stores.  They often work 50-65 hours per week, which makes a collective action worth an awful lot of money if they can prove they were misclassified as exempt. Yesterday, the Fourth Circuit affirmed a district court ruling that a Family Dollar store manager was an exempt executive under the FLSA and not entitled to overtime in addition to salary:
Even though the record shows that as a store manager, Grace was required to perform the full range of tasks necessary for the successful operation of a store, including nonexecutive tasks, she nonetheless remained the highest level Family Dollar employee at the store, and her income depended on the success of her performance and the profits of the store. After applying the statutory and regulatory factors under 29 U.S.C. § 213(a)(1) to determine whether Grace was exempt as an executive, we conclude that she was exempt and therefore not entitled to overtime pay. Accordingly, we affirm the judgment of the district court.
Grace v. Family Dollar Stores, Inc., No. 09-2029 (4th Cir. March 22, 2011) (published).