• Corporations are giving workers in low-wage jobs fancy-sounding titles in order to evade the requirements of the Fair Labor Standards Act (FLSA) and deny them overtime pay, resulting in $4 billion in overtime payments avoided annually.
• To be exempt from overtime pay, an employee must pass three tests: the salary basis test, the salary test, and the duties test.
• Misclassifying workers to evade overtime pay laws is illegal but not uncommon, with a 485% increase in the usage of managerial titles for salaried employees just above the salary threshold set in the Federal Labor Standards Act.
• Major companies such as JPMorgan, Avis Budget Car Rental, and Walmart have been ordered to pay millions in back wages and damages for misclassifying employees and failing to pay them overtime.
• The companies with the highest percentage of “overtime avoiding positions” include Arby’s, Sonic Drive-In, Pizza Hut, Domino’s, Jiffy Lube, Burger King, GNC, H&R Block, Dairy Queen, Subway, Jimmy John’s, Little Caesars, Office Max, and KFC.
Published January 11, 2023. Visit Popular Information to read Judd Legum’s original post.
