Denied class status, sleepless nights ahead for Walmart’s overnight assistant store managers

The U.S. District Court for the District of New Jersey recently considered a request for class certification by a group of employees who were allegedly misclassified as exempt executive and administrative employees. The court denied the request, holding that significant differences in their actual duties prevented their exemption status from being determined on a classwide basis.

Facts

The employees worked for Walmart as overnight assistant store managers (ASMs) in retail stores throughout New Jersey and New York. They filed a complaint on behalf of themselves and two putative classes under the New Jersey Wage and Hour Law (NJWHL) and the New York Labor Law (NYLL), alleging (1) they were misclassified as exempt employees and entitled to overtime compensation under both statutes, and (2) Walmart violated a notice and recordkeeping requirement under the NYLL.

The overnight ASMs were generally scheduled to work four 12-hour shifts per week, resulting in a 48-hour workweek. They received an annual salary and supervised, on average, 40 hourly associates per shift. Because of understaffing and restrictions on overtime for hourly associates, however, they claimed they primarily performed nonmanagerial duties such as replenishing inventory and stocking.

According to Walmart, the overnight ASMs’ roles varied significantly. While some managed hourly customer service, cashier, and accounting personnel, others oversaw food and specialty departments. Additionally, counter-declarations filed by the company showed the overnight ASMs’ ability to hire, fire, or promote employees varied greatly.