Mid-level managers are often classified as exempt from overtime under the administrative exemption of the Fair Labor Standards Act. These employees, in particular, often believe that they are entitled to overtime based upon being “mis-classified” under the act based upon the routine nature of their jobs. In these cases, courts are required to consider the work being done in very detailed manner in order to determine whether the job’s duties include discretion and judgment in matters of significance to the employer. These vague terms can be challenging to define—particularly in positions where the duties are defined by detailed policies and procedures. In Galdo v. PPL Electric Utilities, No. 14-5831, 2016 U.S. Dist. LEXIS 114545 (Aug. 26), the court performed such an analysis.
OPERATORS REQUIRED TO FOLLOW PROCEDURES
PPL provides electricity to customers in northeastern Pennsylvania. The company classifies employees in the positions of transmission system operators and distribution system operators as managers who are exempt from receiving overtime. In the most general sense, the system operators are responsible for ensuring the continuous flow of electricity throughout the region by anticipating and planning for emergencies and troubleshooting outages as they occur. The operators perform their duties in accordance with PPL’s extensive sets of operating instructions, standard operating procedures, checklists and various other procedures in order to ensure the integrity of the system and restoration efforts. Notably, the system operators are not permitted to deviate from the company’s operating instructions or standard operating procedures and may be subject to discipline for any actions not in accordance with PPL’s processes.
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