TopGolf FLSA Lessons: Titles Mean Nothing! | Woods Rogers PLC

If you have employees you don’t pay overtime, be prepared to explain why their duties make them exempt under the RSA, not their title.

Just because you call it a hole in 1 doesn’t mean it is!

The Fair Labor Standards Act (FLSA) is not a law that has much to offer, it must be! Just like the rules of golf, you must earn the FLSA every time!

On the other hand, TopGolf takes a tough game and makes it easy. If you haven’t tried TopGolf, you should. It’s fun, whatever your golf skills! Real golf is difficult; it requires almost perfect coordination of every limb, movement and measure. But this message is not about the game. It is about the rules of the game!

The titles mean nothing (for the DOL)!

For years we have told you that titles mean nothing under the FLSA. You can call employees “Event Sales Managers” or “Event Sales Consultants” or even “KING FOR A DAY! TopGolf learned the hard way by giving employees what the Department of Labor (DOL) called “empty” management titles and paying them a salary plus commission, despite their job duties saying they should be paid. overtime. It cost the company over $ 750,000.00! Ouch, this is a major penalty stroke!

The FLSA considers job duties, not titles. We are all trying to do more with less and suffer together in this pandemic, but the rules still apply. If you have employees that you don’t pay 1.5 times their regular rate of pay for hours over 40 hours per work week, you better be prepared to explain why you think their duties make them exempt. .

First, update your job descriptions

Now you understand that homework is what really matters. Before you read on, note that your managers are updating your job descriptions! If you are considering examining an employee’s duties to determine if they are exempt, you need to know what they are actually doing. Then check your payroll to confirm that you are correct.

Next, look at the overtime exemptions

Once your job descriptions are up to date, start by assuming that an employee is entitled to overtime. It is the rule. The exception is that the employee would be “EXEMPT” from overtime. If you, as an employer, are going to have an exemption, you better be right. Remember that an employee is entitled to overtime pay does not depend on whether he is an employee, but what matters are the duties of the employee.

Although there are many exemptions under the FLSA [pdf], the main exemptions for white collar workers are the ones that most employers rely on:

Exemption of the executive Administrative exemption Professional exemption
The main function of the employee must be the management of the company or the management of a usually recognized department or subdivision of the company The employee’s primary function should be the performance of office or non-manual work directly related to the management or general business operations of the employer or its clients. The employee’s primary function should be the performance of office or non-manual work directly related to the management or general business operations of the employer or its clients.
The employee must usually and regularly supervise the work of at least two other full-time employees or their equivalent The employee’s primary duty includes the exercise of discretion and independent judgment on matters of importance The employee’s primary duty includes the exercise of discretion and independent judgment on matters of importance
The employee must have the authority to hire or fire other employees, or the employee’s suggestions and recommendations regarding the hiring, firing, advancement, promotion or any other change in status of others. employees must be given special weight The main function of the employee requires advanced knowledge in some area of ​​science or learning.

For all exemptions, the employee must be remunerated on a salary basis (as defined in the regulations) at a rate of at least $ 684 / week.

There are more nuances, but suffice it to say that unless your employees meet these general and salary obligations, you can call them whatever you want – but you’ll have to pay for this mistake!

In golf, a bug can cost you a blow, but when it comes to the FLSA, a violation can cost you money, your company’s reputation, and your employees’ trust.

COVID-19 continues to dominate the conversation, but make no mistake, these ancient laws are still alive and well, even applied to remote work situations!


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