Store Managers Were Not FLSA Overtime Exempt “Executive” Employees

Family Dollar is a nationwide retailer that operates over 6,000 discount stores that sell a wide assortment of products, including groceries, clothing, household items, automotive supplies, general merchandise, and seasonal goods.

This class action suit alleged that Family Dollar willfully violated the Fair Labor Standards Act (“FLSA”) by refusing to pay its store managers overtime compensation.  Specifically, the suit asserted that Family Dollar paid store managers a salary, required them to work 60 to 90 hours a week, and refused to compensate them for overtime. According to Plaintiffs, store managers are managers only in name and actually spend the vast majority of their time performing manual labor, such as stocking shelves, running the cash registers, unloading trucks, and cleaning the parking lots, floors, and bathrooms. Store managers spend only five to 10 hours of their time managing anything. Plaintiffs sought unpaid benefits, overtime compensation, and liquidated damages due to Family Dollar's willful FLSA violations.

Family Dollar raised the affirmative defense that its store mangers were “executive” employees exempt from the FLSA’s overtime provisions.  At trial, the jury rejected that defense, and Plaintiffs prevailed.  On appeal, the 11^th Circuit affirmed the verdict, holding that the jury reasonably concluded that the managers’ primary duty was not management, and that they were not exempt "executives" within the meaning of the FLSA.