Companies misclassifying workers as managers to avoid overtime pay and keep labor costs low
The misclassification of some workers as managers is an issue that has been costly for affected employees in the lack of overtime pay received. A recent paper has revealed the frequency of mislabeling of managers and paying them just above the federal salary cutoff for mandatory paid overtime work. Furthermore, the number of managers in the labor force has been on the rise, signaling how this misclassification may be pretext for companies avoiding paying overtime wages and keep labor costs low. However, companies have claimed they have created more opportunities for job growth and advancement through increasing management positions.
See "Companies misclassifying workers as managers to avoid overtime pay and keep labor costs low", Noam Scheiber, New York Times, March 6, 2023