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Salaried Loss Prevention Managers Owed Unpaid Overtime

By   |  Loss Prevention Managers, Overtime  |  No Comments  |  Posted on December 05, 2014  


According to the Fair Labor Standards Act, all employees must be compensated for overtime hours, unless they meet strict guidelines for exemption. Overtime is defined as any time worked beyond 40 hours in one week. These extra hours must be paid at a rate of 1.5 times a worker’s regular rate of pay.

Unfortunately, many businesses misclassify their workers as exempt from overtime payment even when they do not meet the FLSA requirements for this distinction. Many workers believe that because they are salaried or paid a daily rate, they are not eligible for overtime payment, but the FLSA states that this is not necessarily true.

Loss Prevention Managers Denied Overtime

Loss Prevention Managers(LPMs), also known as Asset Protection Managers or Loss Prevention Supervisors, are among the employees who are commonly denied the overtime wages that they are rightfully due. Although these workers are usually paid on a salary basis, they consistently work in excess of 40 hours per week, performing tasks such as checking receipts, taking inventory, and attempting to minimize shoplifting. The definition of exemption from overtime wages is based upon the nature of a worker’s job, not their payment rate or title. If an employee performs repetitive tasks on a daily basis, has little to no influence over how their activities are performed, or fills a role which requires no special training or education, there is a good chance that they are not exempt from being paid for overtime work.

Administrative employees are exempt from overtime payment, a fact often misused and misapplied by employers. Loss Prevention Managers fail to fall under the category or true administrators, as their role does not carry any actual managerial duties or authority. They follow standardized procedures, often acting as basic security guards or other hourly employees. Every detail of their tasks is pre-determined, leaving no room for independent or administrative thought. Based on this realistic description of their duties, they do not truly fall under the administrative exemption to overtime wages.

Thus, even though loss prevention managers are labeled as supervisors and receive a salary, they are often misclassified as exempt. Several class action lawsuits in recent years have been filed on behalf of these workers, successfully recovering the back wages due to them.

Successful Class Actions Seeking Compensation for Loss Prevention Managers

In August of 2014 , Sears agreed to pay a settlement of $5 million to loss prevention managers working for Kmart stores, seeking compensation for denied overtime based on misclassification. Similarly, in August of 2011, Lowe’s settled a class action suit on behalf of loss prevention managers who were denied overtime in California stores for $3 million. A lawsuit is currently underway to seek compensation for LPMs employed by Belk, Inc., who have been denied their overtime wages.

Have You Been Denied Your Rightful Overtime Wages?

If you work as a loss prevention manager at Belk or another company and have been denied overtime payment, your rights may have been violated. Experienced legal counsel can help review your situation and determine if you are owed back wages. Contact the attorneys of Josephson Dunlap LLP today to determine if you are eligible to seek out unpaid overtime wages which have been denied to you through misclassification.

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