Overtime Exemptions: Are Loss Prevention Managers Exempt from Overtime Wages?

Overtime Exemption

The Fair Labor Standards Act (FLSA) establishes overtime pay, minimum wage, and record keeping. Employers must compensate employees for overtime hours unless they don’t qualify. While most Americans are no longer keen on overtime, the FLSA demands that all employees be paid fairly for overtime hours. Regardless, most workers, such as loss prevention managers, must be certain about their eligibility for overtime compensation and not have overtime exemptions.

This article sheds light on unpaid overtime fees for workers, especially loss prevention managers in Houston, TX.

What is the Current Overtime Rate?

Overtime is the extra hours an employee works beyond the standard 40 hours a week. According to the FLSA, overtime compensation should be a minimum rate of 1.5 times the employee’s regular pay rate.

FLSA Overtime Exemptions

Select employees are exempted from the overtime pay provision. Exemptions are narrowly construed against employers enforcing them. The US Department of Labor highlights some common overtime exemptions and pay provisions.

Unfortunately, most businesses misclassify their employees as exempt from overtime, contrary to their eligibility for overtime pay. Most employees believe that a salary and daily pay rate exclude them from getting overtime, contrary to the FLSA guidelines.

Loss Prevention Managers Denied Overtime

Loss Prevention Managers (LPMs)–also known as Loss Prevention Supervisors or Asset Protection Managers, are among the employees who are misclassified and denied their overtime pay. LPMs work over 40 hours weekly despite being paid on a salaried basis.

LPMs work overtime performing tasks such as:

  • Checking receipts
  • Taking inventory
  • Reducing the risks of shoplifting

It is worth noting that overtime pay exemption is contingent upon the nature of one’s job or tasks and not their official title or pay rate. Therefore, there is a high likelihood that employees aren’t exempt from overtime pay if they:

  • Perform repetitive tasks daily
  • Have little to no influence over they perform their activities
  • Fill roles that don’t require any special training or education.

Generally, administrative employees are exempt from overtime compensation, a fact often misused by employers. Salaried loss prevention managers don’t fall under the true “administrative employee” category since their role doesn’t involve managerial authority or duties.

Loss prevention managers follow standardized procedures and act as security guards or other hourly employees. Since their tasks are pre-determined to the detail, loss prevention managers’ roles leave no room for administrative or independent thought.

Unfortunately, despite being salaried and being labeled as supervisors, loss prevention managers are often misclassified as exempt from overtime pay. In retaliation, individuals and organizations have filed multiple class action lawsuits on behalf of loss prevention managers, resulting in the successful recovery and payment of unpaid overtime.

Examples of Successful Class Action Lawsuits Seeking Compensation for LPMs

  • Sears

In August 2014, Sears agreed to settle to a tune of $5 million to loss prevention managers working at Kmart Stores. These LPMs sought compensation for being denied overtime pay due to misclassification.

  • Lowe’s

In August 2011, Lowe’s settled a class action lawsuit for $3 million on behalf of LPMs who were denied overtime pay in California stores.

  • Belk

In 2018, Belk Inc. employees won claim settlements against the company for denying them overtime charges.

Are You Suing for Your Rightful Overtime Wages in Houston, TX?

If you work as a loss prevention manager and you’ve been denied overtime wages, your rights may have been violated. Subject to the FLSA overtime exemptions, LPMs aren’t exempt from overtime pay.

An experienced labor lawyer in Houston, TX, can help you review your situation and determine if you are eligible to demand overtime wages. Contact the attorneys at Josephson Dunlap LLP today to file a lawsuit for denied overtime wages.

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