Welch Consulting

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Wage & Hour: Misclassification

The Claim:
A food service company was charged with misclassifying its managers as exempt employees. Plaintiffs claimed that their job function was similar to non-exempt employees.

Our Findings:
We created an Index of Managerial Activity based on the number of hires, terminations, promotions, salary changes, and other activities at the store consistent with managerial and not non-exempt activity. This analysis revealed sufficient variation in managerial activities across the purported class to reject the claim of a common lack of managerial duties and called into question the purported lack of decision-making authority among class members.