Salary jobs with fake 'manager' titles cost workers $4 billion in overtime, study finds

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Salary jobs with fake 'manager' titles cost workers $4 billion in overtime, study finds
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Calling your retail clerk an 'assistant store manager' has a surprisingly big payoff, new research finds.

These lawsuits focus on a quirk in U.S. wage laws. Generally, companies are required to pay workers one-and-a-half times their hourly rate anytime they work more than 40 hours in a week. But there's an exemption for salaried managers, who receive the same amount of pay each week, as long as they earn above a certain minimum amount. During the time period analyzed by the authors, that cutoff to qualify for OT was $455 a week — equivalent to an annual salary of $23,660.

"There is a systematic, robust and sharp increase in firms' use of managerial titles around the federal regulatory threshold that allows them to avoid paying for overtime," the paper concluded.

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