It seems like the United States has no shortage on employee rights violations. Unfortunately another lawsuit alleging employee misclassification, missed overtime wages, and FLSA violations has come to light. The Village Green Management Company, owner of multiple apartment complexes across the nation, has been accused of unlawfully paying their employees, specifically those under the “Service Manager” job title.
Manco v. Village Green Management Company
- Defendant (Village Green Management) failed to pay Plaintiff (current and former employees) in accordance with the Fair Labor Standards Act. Specifically, Plaintiff was not paid time-and-one-half of his regular rate of pay for all hours worked in excess of 40 hours per workweek.
- Defendant misclassified Plaintiff as exempt from the requirements of the FLSA and paid him primarily on a salaried basis and without regard to the number of hours Plaintiff actually worked.
- The Plaintiff and Class Members are Defendant’s current and former “Service Managers” (or individuals who performed similar duties but were employed under distinct titles) and were paid primarily on salaried basis and/or not compensated for all hours worked, including overtime hours.
The employees involved in this lawsuit were primarily responsible for preventative management of their respective properties. They completed office paperwork, managed the grounds, completed work orders, inclusive of maintenance and repairs on the property, and were on call 24 hours a day for such duties. Although the employees completed job duties that appeared to be managerial, they did not possess the actual authority to hire, fire, or discipline other employees which is a key factor in determining whether an employee is actually “exempt” from overtime pay.
The Plaintiff (and all class members) were not employed in a recognized “administrative” capacity because they did not exercise independent judgment and discretion in performing these job duties. The Plaintiff was not employed in a “professional” capacity as recognized by the FLSA. As such, the Plaintiff was not actually employed as an “exempt” administrator, executive, or professional and should have been entitled to the benefits the FLSA affords to non-exempt employees, including overtime pay. Our lawsuit claims that the Defendant, Village Green Management violated the Fair Labor Standards Act (FLSA) by misclassifying their employees and willfully failing to pay class members in accordance with the law.
Overview of the FLSA
The FLSA was passed by Congress in 1938 in an attempt to eliminate low wages and long hours and to correct conditions that were detrimental to the health and well-being of workers. To achieve its humanitarian goals, the FLSA establishes standards of minimum wages and “limits to 40 a week the number of hours that an employer may employ any of her employees subject to the Act, unless the employee receives compensation for her employment in excess of 40 hours at a rate not less that one and one-half times the regular rate at which he is employed.”
Employees governed by the Fair Labor Standards Act (FLSA) fall into two categories: exempt or non-exempt. Non-exempt employees are entitled to overtime pay, exempt employees are not. In determining whether or not an employee is exempt, there are a few guidelines that the government has put in place to accurately determine the status of certain employees.
To be legally classified as exempt from overtime pay the employee must:
- Regularly supervises two or more other employees
- Have management as their primary duty of the position, and
- Have genuine input into the hiring, firing, promotions, or assignments of other employees.
In this case, as well as many others, employees are misclassified as exempt from overtime pay because they do not actually have the ability to hire or fire other employees which is a key factor in a management exemption. If you think you are currently experiencing this problem with Village Green Management, or another company, please contact us today.