A cautionary example for Washington businesses: a “manager” title can still lead to overtime liability
Many Washington employers assume that paying a salary and giving an employee a “manager” title is enough to treat the role as overtime-exempt. In practice, that assumption can be expensive.
A recent lawsuit filed in the U.S. District Court for the Western District of Washington alleges that The Kroger Co. and its subsidiary Quality Food Centers, Inc. (QFC) misclassified e-commerce managers as exempt and did not pay overtime premiums even when those employees worked more than 40 hours in a workweek. Whether or not the allegations are ultimately proven, the case is a useful reminder: classification decisions should be based on what employees actually do, not just their job titles or pay method.
The core compliance issue: exemption status depends on duties, not labels
There are a number of different exemptions employees can fit within to be considered overtime exempt. In Kroger’s case, they were trying to fit these employees within the executive exemption. In order for an employee to be considered exempt under this category the employer must be able to show that:
- The employee is compensated at a salary of at least $80,168.40 (as of 2026);
- The employee’s primary duty is management of the company or a recognized department or subdivision of the company;
- The employee customarily and regularly directs the work of at least two other employees; and
- The employee has the ability to hire and fire other employees, or their recommendation to hire and fire other employees must carry significant weight.
Overtime exemptions are not automatic. Employers must be able to support an exemption with the employee’s actual job duties and how the role functions day-to-day.
In the Kroger/QFC complaint, the plaintiff alleges that e-commerce managers were treated as exempt executives, but their primary duties were non-exempt work like, filling and preparing customer orders. The complaint also alleges these employees were not involved in hiring or firing, and that their recommendations on personnel decisions were not given particular weight.
For Washington employers, this is the key takeaway: if the day-to-day reality of the job is hands-on operational work, the “exempt manager” classification may be vulnerable.
To learn more about Washington Employers – “Salary” and “Manager” Titles Don’t Prevent Overtime Claims, please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.