Managers & Overtime

1. How Employees Everywhere
End UpWorking For Free
Tim Morette

2. Facts
• Urban Outfitters
• Opened new fulfillment center in PA
• Internal email to salary workers urging them to “volunteer” their time to
“work side by side” paid employees to pack and ship orders on a weekend
• “Go get your co-workers together for a team building activity!”
• Free lunch was provided

3. URBN Response
• Issued statement saying employees were energetic and enthusiastic about
the opportunity
• “The dedication and commitment of URBN employees are second to none”
• “Many hourly employees also offered to pitch in -- an offer which we
appreciated, but declined in order to ensure full compliance with all
applicable labor laws and regulations”

4. Bigger Picture
• Workers are always “volunteering” time
• Checking and responding to work email at home
• Attending “team building” events are bars/restaurants
• Managers are supposed to put in extra time for higher status, freedom, flexibility, and
higher compensation.
• More and more employers are hiring salary workers with fancy titles so they can milk those
employees without having to pay overtime

5. More Facts
• Urban Outfitter managers earn on average $38,000
• Federal Law: “Exempt employees” (executives, managers, and well compensated
white collar workers) cannot work overtime
• 1975: 62% of full time, salary workers qualified for overtime
• Today: 8% of workers qualify
• Employers do not have to pay overtime to workers who make over $23,660 per
year
• This might rise to $50,400 (US median income)

6. Questions
• Is it fair for managers to be ineligible to work overtime?
• Are managers/executives expected to put in more work than their
subordinates?
• Should Urban Outfitters have offered some sort of compensation/incentive
to the volunteers who helped ship orders on a weekend?
• Would you have volunteered your time if you were a salary employee?

7. Sources
• http://www.huffingtonpost.com/entry/salaried-workers-
overtime_5617e44de4b0dbb8000e35b3?utm_hp_ref=business
• http://gawker.com/urban-outfitters-fall-strategy-asking-employees-to-wor-
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