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Don’t micromanage store managers

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in Human Resources,Overtime Labor Laws

Want to keep exempt status in place for your store managers? One key is to make sure regional managers don’t micromanage the store. Giving store managers autonomy helps show they truly do have managerial authority.

Recent case: Irene Grace managed a Family Dollar Store. She made a salary of more than $600 per week and received performance bonuses. But she sued, alleging she was really an hourly employee entitled to overtime. She claimed she spent over 90% of her time on nonmanagerial tasks.

The court said Grace was properly listed as exempt because her regional manager largely left her to manage the retail location as she saw fit. Plus, the court said she was managing at the same time she was working side-by-side with subordinates, all of whom were paid far less. It dismissed her case. (Grace v. Family Dollar, No. 3:06-CV-306, WD NC, 2011)

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