Experts in Economics & Statistics

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Case Study: Misclassification

A food service company was charged with misclassifying its managers as exempt employees. Plaintiffs claimed that their job function was similar to non-exempt employees. 

We created an Index of Managerial Activity based on the number of hires, terminations, promotions, salary changes, and other activities at the store consistent with managerial and not non-exempt activity. This analysis revealed sufficient variation in managerial activities across the purported class to reject the claim of a common lack of managerial duties and called into question the purported lack of decision-making authority among class members.