Inflated titles plus no overtime wages equal big fine
This clothing giant recently found out that adding manager to an employee’s title doesn’t mean you don’t have to pay that person overtime.
A recent investigation by the Department of Labor revealed that Levi Strauss & Co. misclassified its assistant store managers (and other administrative employees) as overtime exempt.
It required these employees to work off the clock, during late night closings, early morning openings and staffing shortages without compensation.
The company failed to record all hours worked in its payroll system over a two-year period.
As the a result of the investigation, Levi’s has to pay more than $1 million in overtime back wages to 596 workers, and upgrade its time and attendance system.
Free Training & Resources
Webinars
Provided by Yooz
Further Reading
What happens when an employee works 50 hours per week, but payroll makes it look like 25 hours for each of two companies to avoid overtime ...
After more than a year, the IRS has made changes to Form 1099-MISC, Miscellaneous Information, and Form 1099-NEC, Nonemployee Compensation....
Believe it or not, more than 80% of workers like their employers’ Paid Time Off (PTO) packages. But that doesn’t stop a surpris...
Does dual-role scheduling put your overtime compliance at risk? A new DOL opinion letter says it depends on the specific facts of the arran...
The IRS announced it isn’t planning late-in-the-game changes to tax year 2025 Forms W-2 and other payroll forms, such as the 941. ...
Does a quarterly bonus trigger an overtime recalculation? A recent DOL opinion letter says it depends on how the bonus is structured – an...