Legal Blog

Telebriefs®: Kmart Paid $3.8 Million to Settle Misclassification of So-Called Exempt Employees

paycheckWith the Department of Labor’s (DOL) recent changes to the salary basis test, it is no surprise that employers are being brought to court by their employees who claim that they have been misclassified as exempt employees and denied overtime pay. For instance, in a recent case, Kmart agreed to pay $3.8 million for misclassifying some of its assistant managers as exempt executive employees. In order to be recognized as exempt, employees need to meet both the salary and duties tests established by the DOL. In Kmart’s case, it was determined that the assistant managers were engaging in more administrative tasks than executive duties, thus invalidating their assigned exemption. As mentioned in prior Labor and Employment Telebriefs, the number of these cases has increased significantly in the last few years. To learn more about this case and how to avoid misclassification of employees in your workplace, listen to this week’s Telebrief here.


Also in this week’s Labor & Employment Telebrief: the Supreme Court’s decision on what qualifies as constructive discharge, whether or not Uber is liable for certain expenses and costs incurred by their drivers after they have worked 40 hours in a work week, and details on a lawsuit against PPE Casino Resorts Maryland for unpaid training hours.



Geared to executives with employee relations responsibilities (HR directors, supervisors, managers, business owners), Labor and Employment Telebriefs® are information-packed 30-minute briefings via the telephone. Telebriefs® provide information and insights to help executives stay current with latest workplace law developments and in front of trends so as to enable proactive policy making and management. On the 2nd and 4th Wednesday of each month, from 9 – 9:30 am ET, join Offit Kurman Labor & Employment Chair Howard Kurman, as he discusses developments occurring over the past two weeks that will most significantly impact employers nationwide. The focus is squarely on the practical. Why is this event significant for employers? What are the lessons to be learned or actions taken? These twice-monthly teleconferences are an easy way to stay current and compliant with the latest Labor and Employment law developments that will significantly affect you and your company.  Our guarantee: You will learn something useful, on every call! If you have any questions regarding  labor and employment issues, please contact

Howard Kurman: | 410.209.6417


Howard Kurman websiteHoward K. Kurman is an employment attorney. Mr. Kurman regularly counsels clients on all aspects of proactive employment/labor issues. He represents employers ranging in size from as small as 20 employees to those employers with geographically disparate locations consisting of over 4,000 employees. Mr. Kurman assures, through regular contact with his clients, that they promulgate and maintain the most effective employment policies that will, to the extent possible, minimize their legal exposure in today’s litigious workplace. Mr. Kurman offers advice on employee handbooks, employment agreements, and covenants not to compete as well as confidentiality and non-disclosure agreements. Previously, Mr. Kurman was the chair of the firm’s Labor & Employment Practice Group.

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