Are You a Salaried “Manager” Working Overtime Without Overtime Pay?

A proposed $7.5 million settlement involving Festival Foods department managers highlights an important wage-and-hour issue: a managerial title and a salary do not automatically make a worker exempt from overtime.

Why Worker Misclassification Matters

Under the Fair Labor Standards Act (“FLSA”), covered, nonexempt employees generally are entitled to overtime pay for hours worked over 40 in a workweek. The U.S. Department of Labor’s (“DOL”) Fact Sheet #23 on overtime pay explains the general overtime requirements. Certain executive, administrative, and professional employees may be exempt, but exemption depends on the employee’s compensation and actual job duties—not simply a job title or the fact that the employee receives a salary. The DOL’s Fact Sheet #17B on the executive exemption states that job titles do not determine exempt status.

For the executive exemption, the DOL states that an employee’s primary duty generally must be management; the employee must customarily and regularly direct the work of at least two full-time employees or their equivalent; and the employee must have authority to hire or fire other employees, or the employee’s suggestions and recommendations regarding specified changes in employee status must be given particular weight, in addition to satisfying applicable salary requirements.

Festival Foods Managers Seek Approval of $7.5 Million Settlement

On August 24, 2026, Law360 reported that Festival Foods and a group of department managers asked a Wisconsin federal court to preliminarily approve a $7.5 million settlement of claims that salaried department managers were misclassified as exempt from overtime. The proposed settlement is expected to cover roughly 1,000 current and former employees.

According to Law360, the workers alleged that Festival Foods uniformly classified salaried department managers as overtime-exempt, even though they spent most of their time performing manual labor and customer service and allegedly did not perform the duties necessary to qualify for the exemption. Festival Foods has denied the allegations and maintains that the managers were properly classified.

The settlement is proposed and remains subject to court approval. Law360 reported that the parties estimated an average gross recovery of approximately $7,418 per person, with individual allocations reaching roughly $10,150.

A “Manager” Title Does Not Decide Overtime Rights

The allegations in the Festival Foods case illustrates a broader issue for workers in retail, restaurants, hospitality, warehouses, and other industries. An employee may be called a manager, assistant manager, department manager, or supervisor and still potentially be entitled to overtime if the employee does not satisfy the legal requirements for an exemption.

Questions may arise when a salaried manager regularly works more than 40 hours per week, but spends substantial time performing the same customer-service, stocking, cleaning, production, or other non-management work as hourly employees, while having limited genuine management authority. Whether a particular employee is exempt is fact-specific, and performing some non-management work does not by itself make a manager nonexempt.

Signs Your Overtime Classification May Be Worth Reviewing

• You are paid a salary and routinely work more than 40 hours per week without overtime pay.
• Your title includes “manager” or “supervisor,” but much of your work is manual, customer-facing, stocking, cleaning, production, or other non-management work.
• You have little authority to hire or fire employees, or your recommendations about hiring, firing, promotion, or other changes in employee status are given little weight.
• Your schedule, staffing, policies, and important decisions are largely controlled by higher-level managers or corporate rules.
• You perform duties similar to hourly employees, but are classified differently for overtime purposes.

These are indicators for further review—not a determination that a worker has been misclassified. Exemption status depends on the employee’s actual duties, compensation, and applicable federal and state law.

What Records Should Workers Preserve?

Workers concerned about possible overtime misclassification should consider preserving records they lawfully possess, including pay stubs, schedules, time records, job descriptions, emails or messages concerning duties, and records showing hours worked. Do not take confidential business information or materials you are not authorized to possess.

Concerned About Overtime Misclassification?

If you are a salaried manager or supervisor who regularly works more than 40 hours per week without overtime pay, Kehoe Law Firm, P.C. is available to evaluate whether your classification and job duties may raise wage-and-hour concerns.

For a free, no-obligation legal evaluation, send us a message or contact:

Michael Yarnoff, Esq., (215) 792-6676, Ext. 804
[email protected]
[email protected]

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm representing investors and consumers in matters involving securities fraud, corporate misconduct, mergers and acquisitions, antitrust violations, whistleblower claims, data breaches, consumer fraud, employment law violations, and retirement-plan mismanagement. Its attorneys have served as lead or co-lead counsel in major securities cases, recovering more than $10 billion for institutional and individual investors.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for attorneys’ fees or litigation expenses. Any request for attorneys’ fees and expenses may be subject to court approval.

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