Department Manager Misclassifications Trigger $8.875M Wage Liability
At what level of authority does a manager become exempt from overtime? A federal judge in Maine approved an $8.875 million settlement involving salaried department managers at Hannaford Supermarkets.
The managers, who oversaw the bakery, deli, produce and meat departments, were classified as exempt. They alleged they worked more than 40 hours a week without overtime pay despite doing significant amounts of nonmanagerial work like stocking and cleaning alongside hourly employees. They also said they had limited authority over hiring, firing and discipline. The settlement includes:
- About $5.8 million for the affected employees
- Just over $3 million for administration, legal, and attorneys’ fees, and
- $25,000 in service awards for the named plaintiffs
More info: Vye v. Hannaford Bros Co. LLC
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