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Les Schwab Owes Overtime Pay to Misclassified Assistant Managers
 A Multnomah County jury decided in favor of more than 200 current and former Les Schwab Tire Center assistant managers who accused the company of failing to pay them for overtime. The company classified the assistant managers as "exempt," and not subject to state and federal overtime laws. In contrast, employees classified as non-exempt are entitled to overtime compensation for hours worked in excess of 40 hours per week. Exempt employees generally include executives, managers and professional staff.
The jury verdict held the company liable for overtime pay. A separate phase of the trial will determine the additional wages due (which may be several million dollars).
This case illustrates the importance of properly classifying employees as exempt or non-exempt. The focus should be on the job duties - not the job title or whether the employee is paid a pre-determined salary. The outcome in this case depended on whether the assistant managers' primary duty was management or changing tires - the jury concluded the primary duty was tire service rather than management.
Don't put your company in Les Schwab's shoes. Make sure each exempt employee meets the criteria in one of the following categories:
- Executives and Supervisors must (1) direct the work of at least two employees, (2) play a significant role in hiring and termination of employees, (3) regularly exercise independent judgment (as compared to being told what to do), (4) have management as their primary duty, and (5) be paid a pre-determined salary that exceeds a specified threshold.
- Professional employees must (1) perform work that requires advanced knowledge usually obtained through a prolonged course of study, (2) perform work that is original or creative in an artistic field, work as a certified teacher, or practice law or medicine, and have this work as a primary duty, (3) regularly exercise independent judgment, and (4) be paid a pre-determined salary that exceeds a specified threshold.
- Administrative employees must (1) assist an executive or perform work under only general supervision, (2) regularly exercise independent judgment, (3) have as their primary duty responsible office or nonmanual work directly related to the management of general business operations of the employer or their customers, and (4) be paid a pre-determined salary that exceeds a specified threshold.
Depending on job duties, other positions that may be exempt include (1) outside salespersons, (2) computer professionals, and (3) agricultural employees.
Please contact us if you have questions about properly classifying your employees. More information is also available by visiting websites for BOLI (for Oregon employers) or Labor and Industries (for Washington employers).
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Manufacturer Liable for Discrimination During I-9 Process
The Department of Justice (DOJ) announced a $10,000 settlement with a rug manufacturer found liable for document abuse during the I-9 process. A former employee was terminated for refusing to provide the employer with specific documents it requested during completion of his I-9 form. To complete his I-9, the employee, a naturalized US citizen of Hispanic origin, provided an unexpired driver's license (a List B document) and an unrestricted social security card (a List C document). The employer accepted these documents, but also requested that the employee provide his green card to prove his eligibility to work. When the employee objected, he was terminated. The documents the employee presented were sufficient for I-9 purposes. According to the DOJ, the employer committed "document abuse" when it requested additional and different documents than were required for the I-9 form. In addition to the monetary settlement, this employer now faces an increased risk of an I-9 audit and repeated reviews of its hiring and I-9 practices by DOJ. Employers must treat employees in a nondiscriminatory manner when recruiting, hiring, firing and verifying identity and authorization to work. They cannot go beyond what is allowed during the I-9 process. For example, an employer may not: - Require that employees provide specific documents
- Refuse to accept a document because of an unfounded suspicion that the document is fraudulent
- Treat an applicant differently based on a suspicion that he or she is a non-citizen
- Request employment authorization documents before hire
- Refuse to accept a document because the document expires at a future date
- Limit jobs to US citizens
For answers to your questions about the I-9 process, please contact us, or visit the US Citizenship and Immigration Service (USCIS) I-9 Central website.
USCIS also offers a free webinar to help employers understand the basics regarding I-9 forms. The webinar provides an overview of the I-9 process, including step-by-step instructions on how to complete each section, in addition to guidance on document retention and storage. For more information, or to attend one of the free sessions, go to the webinar registration page.
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Calling All CEOs, Owners, Presidents, and Executive Directors!
Our CEO Roundtable Breakfast Series offers a unique opportunity to share ideas with your peers in a candid, small group setting. Please join us as we kick off the first three interactive sessions this spring.
Secrets of Success - Rebounding after the Storm
Facilitator: Jim Grew, The Grew Company March 8
As the economy emerges from recession, winners will take advantage of their most important resources: curiosity, creativity, and discipline.
- What are your next steps?
- What is one action that you took recently that worked...or didn't work?
- What promises the biggest payback for your organization?
The Triple Bottom Line (TBL) - People, Profit, Planet
Facilitator: Paul Spindel, UEA Trainer and Consultant April 5
This contemporary philosophy uses an expanded spectrum of values and criteria for measuring organizational success.
- How will (or how does) your organization manage its TBL?
- What are steps your organization will undertake to improve?
- Do you see a priority among people, profit, and planet? Or do you need all three legs of the stool to stand?
Rewarding and Retaining Key Talent
Facilitator: Paul Barber, MBL Group LLC May 10
With an improving economy, there will be increased pressure to reward and retain key talent. How can private companies compete when equity is not an option?
- How does your organization balance profit with rewards?
- How do you build retention into your compensation program?
- What are the pros and cons of the core incentive models?
Roundtable sessions will be held at the Multnomah Athletic Club, 1849 SW Salmon Street, in downtown Portland. The sessions will run from 7:30 to 9:00 a.m., with networking opportunities from 7:00 to 7:30. The cost for these three valuable sessions is $250 (individual sessions are $100 each).
Please RSVP to Reese (503) 595-2095 or email umta@unitedemployers.org.
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Spring Training at UEA
We're gearing up for our spring training season. Call (503) 595-2095 or visit our website to register for one of our upcoming workshops! First Aid/CPRMarch 14 April 11 This program meets the OSHA requirements for Washington and Oregon. Taught in a relaxed manner with hands-on practice. All classes include AED (Automatic External Defibrillator) training.
Interviewing and HiringMarch 22 Are you getting to know the candidates and hiring the best match for each open position? Can you write a "legal" job advertisement? Do you know what questions can be asked in a job interview? BOLI's Senior Civil Rights Investigator, Joseph Tam, will lead this interactive workshop covering the hiring process. You'll learn how to make fair, nondiscriminatory and smart selection decisions. Joseph will also address attendees' questions about the challenges they face with interviewing and hiring. Supervision Essentials Series Our Supervision Essentials series consists of five workshops that address key skills every supervisor should master. Participants can take any or all of the sessions. Session 1: Role of the Supervisor April 25 As a new supervisor, your role within the company changes dramatically. You now represent the company's management and must continuously work to improve processes and employee work styles in order to increase productivity and meet customer needs. Session 2: Communicating Effectively May 2 Communication is key to effective supervision. As a supervisor, you act as a bridge between management and your employees. You need to express yourself clearly and listen to both groups with an open mind. This workshop will give you the skills to accomplish both of those goals. Session 3: Decision Making May 9 Does the thought of making decisions have you eyeing the nearest fire exit? If so, you're not alone--many new supervisors are given the authority to make decisions but not the training they need to do it well. Supervisors must identify the most effective decision-making strategy for a given situation, make sure everyone understands that strategy, and develop a plan to move forward. Our Decision Making workshop can help! Session 4: Performance Management May 16 In today's competitive market, companies must expect each employee to contribute in a meaningful way to both the culture and the bottom line. This session will help you to set clear expectations for employees and hold them accountable for the appropriate levels of performance. Session 5: Building Productive Teams May 23 Today's workplace teams can foster greater employee involvement, improve work processes, and increase productivity. However, a successful team is more than simply a group of people who work together. This program focuses on the process of team formation and the skills needed for team success.
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