Monday, February 7, 2011

A rose by any other name

We recall the Shakespeare quote. "What's in a name? that which we call a rose
By any other name would smell as sweet"

Local news article


A manager title cannot be provided to an employee and exempt them from federal wage laws. Yes, I intentionally used the word exempt. As an HR professional, I know a better title may attract a better candidate. However, the responsibilities have to be fitting of a manager in order to exempt them from overtime.

The Fair Labor and Standards Act as amended gives a painfully detailed description of responsibilities and testing to determine if a job should be considered exempt.

See Federal Wage Laws


"For the FLSA section 13(a)(1) exemptions to apply, an employee generally must be paid on a salary basis of no less than $455 per week and perform certain types of work that:
is directly related to the management of his or her employer's business, or
is directly related to the general business operations of his or her employer or the employer's clients, or
requires specialized academic training for entry into a professional field, or
is in the computer field, or
is making sales away from his or her employer's place of business, or
is in a recognized field of artistic or creative endeavor."


Keep in mind that an employer can always pay overtime voluntarily. There is no penalty for being more generous than the law requires. However, the employer should be consistent within the job band and not selective of certain employees in similar roles.

If you are not sure what to do, consult a professional human resources person or even your attorney. It’s better to spend a little upfront, than to spend a lot in fees, fines, and back pay.

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