You make the call: Is this gas station employee non exempt, vs exempt?

Two decisions from different federal appellate courts illustrate the potential uncertainty in classifying an employee as an exempt employee. You make the call: Is this gas station employee non exempt, vs exempt?

In Thomas v. Speedway SuperAmerica, LLC1, the court pondered whether the store manager of a chain of gas station-convenience stores was properly classified as an exempt employee.

The key issue in the case was whether the employee's primary duty was management.

1. She spent approximately 60 percent of her time on non-managerial tasks such as stocking merchandise, sweeping floors, cleaning bathrooms, operating the register and clerical duties.
2. However, she also hired, trained, disciplined, scheduled and evaluated employees.
3. She recommended increases, most of which were approved, and terminated some employees without prior approval from her district manager.

Is this gas station employee exempt?
Based on these facts, the court concluded that the employee's primary duty was management and that she qualified as an exempt-executive employee.

In Rodriguez v. Farm Stores Grocery, Inc., the court considered whether managers for a drive-through grocery store chain were non-exempt employees.

The issue in this case turned on whether the employees' primary duty was management.

1. One store manager testified that in a typical week, he spent an average of 30 percent of his time cleaning, 50 percent on customer attention or service, 10 percent on merchandise receiving and 10 percent on stocking merchandise.
2. Other managers conceded that they spent some time each week on managerial tasks, but all insisted it was not the majority of their work.
3. The store managers further testified that they lacked authority and discretion over their stores and employees. For example, evaluation forms they signed were actually completed by district managers and they had to seek permission from a district manager before making management decisions.

Is this gas station employee exempt?

Based on these facts, the appellate court found that the jury reasonably concluded that the store managers' primary duty was not management. Therefore, these employees were entitled to overtime pay.

Whether a given employee is properly classified as exempt is a factual determination. Effective Aug. 23, 2004, the DOL issued new regulations governing the white-collar exemptions. While the cases outlined here apply the older regulations (because few appellate court cases have been decided under the new regulations), the issue of whether management is the primary duty of an exempt employee remains crucial under the new regulations. In both cases, however, the courts refused to adopt an across-the-board rule that any employee who is responsible for a store location must come within the executive exemption.

Modern Business Associates deals with the non exempt vs exempt employee issues including keeping updated on recent statues and case law. As a Professional Employee Organization, our clients rely on us to help them effectively deal with these kinds of labor standards act issues.