The Legal Landscape: FLSA and the Executive Exemption

Overtime law in the U.S. starts with the Fair Labor Standards Act (FLSA). This federal law says most employees get paid 1.5 times their regular rate for any hours over 40 in a workweek. But the FLSA also has specific exemptions for certain workers, like those in “bona fide executive, administrative, or professional” roles. People often call these “white-collar exemptions.”

For Assistant Bank Managers, the executive exemption is the one most often used (and often incorrectly). To qualify, an employee needs to pass three main tests:

1. Salary Basis Test: You have to get a set, fixed salary that doesn’t change based on how much or how well you work. As of January 1, 2020, this salary needs to be at least $684 per week ($35,568 per year) by federal law. (Heads up: some states, like New York, have higher salary requirements).
2. Salary Level Test: Your salary has to meet the minimum amount.
3. Duties Test: Your main job needs to be managing the business, or a recognized department or part of it. You also have to regularly direct the work of at least two full-time employees (or their equivalent), AND either have the power to hire or fire other employees, or your suggestions about hiring, firing, promoting, or changing their status carry significant weight.

The salary tests are pretty simple, but it’s the duties test that causes most of the misclassifications, especially for Assistant Bank Managers. Employers often just look at job titles and descriptions instead of what people actually do every day. This often leads to widespread wage theft.

Beyond the Title: The “Duties Test” in Detail

An ‘Assistant Manager’ title sounds pretty managerial, right? But legally, it’s not always that simple. Courts consistently stress that it’s the actual work performed, not the title on a business card or what the employer intended, that determines if someone qualifies for an exemption. So, let’s break down the executive duties test components:

Primary Duty: What Does It Really Mean?

The FLSA defines “primary duty” as the “principal, main, or most important duty an employee performs.” Even though there isn’t a strict time percentage, courts usually look at a few things:

• The amount of time spent performing exempt duties.
• The relative importance of the exempt duties as compared with other types of duties.
• The frequency with which the employee exercises discretionary powers.
• The employee’s relative freedom from direct supervision.
• The relationship between the employee’s salary and the wages paid to other employees for nonexempt work.

Many Assistant Bank Managers spend a lot of their day doing things tellers or customer service reps do: processing transactions, opening accounts, resolving routine customer complaints, cross-selling products, and handling cash. If these non-exempt tasks take up most of your time, then your “primary duty” might not actually be management, no matter what your job description says.

Management of a Department or Sub-division

For this test, an employee needs to manage a “recognized department or subdivision.” A bank branch usually counts as one of these. But here’s the real question: is the Assistant Manager actually running it, or just helping the manager while mostly doing non-managerial work?

Judges want to see if the assistant manager has real authority and responsibility for running the whole department, not just supervising a few tasks or people for short periods.

Authority to Hire or Fire (or Influence)

This part is crucial. For an executive to be exempt, they either need the direct power to hire or fire, or their suggestions about employment changes (like hiring, firing, promotions, demotions, or disciplinary actions) have to carry “particular weight.”

What does “particular weight” mean? It means your employer takes your recommendations seriously, and usually follows them. If your ideas about staffing changes are rarely asked for or often ignored, then you probably don’t meet this part of the job test. Many Assistant Bank Managers, for example, might interview candidates or join in reviews, but they often don’t have the final say that truly makes someone an executive.

Discretionary Powers

Exempt employees usually get to make their own important decisions and use their judgment. Take an Assistant Bank Manager, for example; they might approve loans (within limits), make exceptions for customers, or fix complex operational problems without someone always looking over their shoulder. But if most of your choices come straight from company policy, need a boss’s approval, or just involve following set rules, then your job likely doesn’t give you enough freedom to qualify as exempt.

What Missouri Courts Look For in Employment Law Cases

Missouri courts do follow federal FLSA rules, but they often interpret them with a focus on the employee. So, when they’re deciding if an Assistant Bank Manager is truly exempt, they’ll really dig into the actual day-to-day tasks of the job.

Focus on “Actual Work Performed”

When it comes to overtime, Missouri state courts (just like federal courts in the Eighth Circuit, which includes Missouri) really care about what you actually do, not just what your job description says. They know employers often hand out generic “manager” titles to get out of paying overtime, even when someone’s main job is just day-to-day operations.

So, if you’re an Assistant Bank Manager in Missouri, here’s what courts will really dig into:

• How You Spend Your Time: How much time do you actually spend doing things like teller duties, opening accounts, processing transactions, and routine customer service? And how much is on real management stuff, like strategic planning, budgeting, staffing, and reviewing other employees? If you’re spending 70-80% of your time behind the counter or at a desk doing the same work as non-exempt staff, that’s a big red flag for misclassification.
• Who You Supervise: How many people do you genuinely manage? Are they full-time, or mostly part-timers where the “two or more” rule might not even apply? Is your supervision real, or just casual oversight when you’re on the same shift?
• Daily Tasks vs. Big Picture: Are your main responsibilities about day-to-day operations (like making sure transactions run smoothly and following routine rules) or more strategic stuff (like helping grow the business, setting department goals, or putting major policy changes into practice)?
• Solving Problems: Are you mostly just the person customers get sent to when tellers can’t help? Or do you actually have the power to fix big problems on your own and make decisions that affect the branch’s overall operations or money situation?

Missouri courts really don’t like “working foremen” situations. That’s when someone mainly does the same job as the people they supposedly supervise, but just gets a manager title. If your main role is to jump in and help with basic bank tasks when staffing is short, or to handle the extra routine customer service, chances are you’re not an exempt executive. (just saying)

New York Courts: Similar but Distinct Scrutiny

New York has some of the strongest labor laws in the country, and its courts are really protective of employees. While the state generally follows federal FLSA guidelines, New York’s own laws and regulations (plus how judges interpret them) set an even higher bar. It’s much tougher for employers to classify workers as “exempt” here.

NY Labor Law vs. FLSA

The New York Labor Law (NYLL) has rules similar to the FLSA, but in some areas, it actually offers more protection. For example, New York sets its own minimum weekly salaries for executive and administrative roles. These thresholds are often higher than federal standards and get updated regularly. As of December 31, 2023, for executive and administrative roles to be exempt in New York City, Nassau, Suffolk, and Westchester counties, the minimum salary is $1,200 a week ($62,400 a year). In the rest of the state, it’s $1,125 a week ($58,500 a year). This means if your salary as an Assistant Bank Manager in New York is less than these thresholds, you’re automatically non-exempt and entitled to overtime, no matter what your job duties are.

The “Primary Duty” Analysis in NY

New York courts are really strict, often even tougher than federal courts, when they examine an employee’s “primary duty” to see if they’re exempt. They’re looking for clear proof that the employee’s main responsibility is management, not just doing the same tasks as their team.

Key things New York courts consider include:

• Meaningful Management: Does the Assistant Manager actually perform real managerial duties, like interviewing, hiring, and training staff; setting and changing pay rates and work hours; directing work; keeping production records for supervision; handling employee complaints; disciplining staff; planning work; deciding what methods to use; distributing work among employees; figuring out what equipment to use; managing the flow of materials or products; ensuring employee and property safety; or planning and managing the budget? If they’re doing very little of these things, or if higher management mostly dictates these tasks, the exemption likely won’t apply.
• Time Spent on Exempt Duties: It’s not about a strict percentage, but New York courts often want to see a significant portion of time (like over 50%) dedicated to real managerial tasks. If an Assistant Bank Manager is always covering for tellers, processing complex transactions, or just handling routine customer service issues, New York courts will likely find they’ve been misclassified.
• Autonomy and Discretion: New York courts really stress the need for true independent judgment and the ability to make their own decisions. If an Assistant Bank Manager’s choices are mostly dictated by corporate policies, strict procedures, or constant oversight from a higher manager, they probably won’t qualify for the executive exemption.

So, what it comes down to is, both Missouri and New York courts care more about what you actually do than your job title. A fancy title alone is never enough to deny someone overtime pay.

Common Misclassification Scenarios for Assistant Bank Managers

From what we’ve seen, here are common situations where Assistant Bank Managers get misclassified:

• Teller/Customer Service Overload: This is probably the most common. Banks are often short-staffed, so Assistant Managers end up spending most of their time directly helping customers, handling transactions, and basically acting as a glorified teller or customer service rep. Their actual “management” tasks become secondary, just happening when things are slow.
• “Managerial” Tasks as Secondary Duties: Sure, an Assistant Manager might do some scheduling, open/close the branch, or help with basic training. But if these tasks are rare, really minor, or only take up a tiny bit of their day compared to all the non-exempt work, then they’re not truly a “primary duty” of management.
• Lack of True Supervisory Authority: A lot of Assistant Managers don’t actually have real power over things like hiring, firing, promotions, or serious discipline. Their “recommendations” are often just suggestions, and they rarely hold much weight. They might tell employees what to do for simple tasks, but they don’t really control their performance or career path.
• “Key Holder” Misclassification: You’ll find some Assistant Managers are basically just “key holders” or “shift supervisors.” They open and close, secure the branch, and handle immediate problems. But they don’t actually pass the executive duties test, meaning these jobs are usually non-exempt.
• Salary Below State Thresholds: Remember how we talked about New York? Well, if your salary is less than your state’s minimum for executive exemption, you’re non-exempt, no matter what your job duties are. Always make sure to check your state’s exact salary thresholds.

Strengthening Your Case: What Records Matter?

If you think you’ve been misclassified, getting your documents in order is key. While employers usually have to prove an exemption applies, your own records can really boost your case if you join a collective or class action. Here’s what you should start collecting (just make sure it’s discreet and legal, naturally):

• Task Lists & Daily Activity Logs: Start a personal log of your daily activities. Write down exactly what you do and how much time you spend on each task. For example, you might note: “3 hours processing transactions,” “2 hours opening accounts,” “1 hour assisting manager with report,” or “1 hour resolving customer dispute.” This kind of detail really shows what your main job responsibilities are.
• Emails & Communications: Hold onto emails where you’re asked to do non-managerial work, or any that highlight your limited decision-making power. If you’re always getting approval for simple stuff, or if your “managerial” ideas get shot down often, these messages can speak volumes.
• Staffing Schedules & Ratios: Grab copies of schedules. Look for ones that show you working right next to tellers or other non-exempt employees, doing the exact same jobs, especially when things are short-staffed. This really points out how hands-on your role actually is.
• Performance Reviews & Job Descriptions: These documents aren’t always the final word, but they can often clash with what you actually do. For instance, if your review mainly talks about sales numbers or customer satisfaction (which is common for non-exempt jobs) instead of big-picture strategy, that could be helpful.
• Company Policies & Procedures: Look for any company documents that spell out strict procedures you have to follow. If they limit your ability to make independent decisions or use your own judgment, they can definitely back up your claim.
• Witness Testimony: Think about whether past or present colleagues, especially anyone you were supposed to “manage,” could confirm what you actually did and that you didn’t really have managerial power.

Just remember, as you gather this evidence, make sure you’re not breaking any company rules about confidentiality or how you access data. Stick to information you can genuinely get your hands on as part of your job.

Why Collective or Class Action? Employment Lawyers Handle Both.

When Assistant Bank Managers are misclassified, it’s rarely just one person. If one manager isn’t getting proper overtime, chances are many others at that bank, or even across the whole company, are in the same boat. That’s why these situations often turn into collective actions under the FLSA or class actions under state wage and hour laws.

A collective or class action lets a group of employees who’ve faced the same illegal pay issues team up to get what they’re owed. This approach has some real benefits:

• Strength in Numbers: You’re not fighting big corporations with huge budgets alone.
• Shared Costs: Legal fees and expenses get split among more people.
• Efficiency: One lawsuit can sort things out for many individuals, saving everyone from endless separate cases.
• Systemic Change: Winning a class action can make employers fix their illegal pay practices for all their employees.

At Rowdy Meeks Legal Group, we focus on major, nationwide class action lawsuits involving pay and employment. We’ve helped groups of employees recover millions in unpaid wages from big corporations in these complex cases. Our firm is set up to handle these challenging claims, working with clients across Missouri, California, Colorado, and New York.