The Salaried Operations Analyst

Question 75: The Salaried Operations Analyst

Your role

You represent Noah Park, a former operations analyst seeking unpaid overtime. Determine whether the administrative exemption applies and calculate the exact wage claim from the supplied salary, hours, limitation period, and liquidated-damages rule.

Governing law

Assume the following wage rules apply:

1. A nonexempt employee must receive one and one-half times the regular hourly rate for each hour worked over 40 in a workweek.

2. Payment on a salary basis does not alone establish exemption. The employer bears the burden of proving every element of an exemption.

3. The administrative exemption requires a primary duty of office or nonmanual work directly related to management or general business operations and the exercise of discretion and independent judgment on matters of significance.

4. Applying detailed manuals, entering data, escalating defined exceptions, and choosing among prescribed options do not constitute independent judgment on matters of significance merely because accuracy is important.

5. Under the salary agreement used here, the weekly salary compensates exactly 40 hours. The regular hourly rate is weekly salary divided by 40, and every overtime hour is paid at 1.5 times that rate.

6. The ordinary limitation period is two years. It is three years for a willful violation, meaning the employer knew or recklessly disregarded that its pay practice violated the law.

7. Liquidated damages equal the unpaid overtime unless the employer proves both subjective good faith and objectively reasonable grounds. A decision to disregard a specific internal compliance warning defeats that defense.

8. Reasonable attorney fees and costs are separately recoverable but are not calculated in this assignment.

Facts

Noah worked for Transit Grove for 120 consecutive weeks before filing suit. He was paid a fixed salary of $1,200 per week and no overtime.

His hours were:

• 50 hours per week for the first 80 weeks.
• 46 hours per week for the final 40 weeks.

Noah's title was Senior Operations Analyst. His daily work consisted of compiling route-delay reports, applying a 42-page exception matrix, approving credits within preset limits, and escalating any deviation not listed in the matrix. He could not change policy, negotiate vendor terms, hire, discipline, set budgets, or bind the company. His supervisor reviewed every credit above $500.

Transit Grove argues that Noah exercised discretion because he selected the correct matrix category and his work affected a national delivery network.

Before Noah's 120-week period began, an HR compliance manager emailed the vice president:

“This analyst role follows fixed decision tables and should be reclassified as nonexempt. Salary alone will not support administrative status.”

The vice president replied:

“Keep them salaried. Overtime will wreck the budget, and no one has sued.”

Transit Grove made no duties review and kept the classification. Noah filed within one week after leaving. All 120 weeks fall within three years, but only the final 104 weeks fall within two years.

Assignment

Analyze:

• Whether Noah's duties satisfy every element of the administrative exemption.
• The significance of operational importance versus independent judgment.
• Whether the three-year willful period applies.
• The regular hourly and overtime rates.
• Unpaid overtime for the first 80 weeks.
• Unpaid overtime for the final 40 weeks.
• Total unpaid overtime.
• Liquidated damages and total wage recovery before fees and costs.
• The concrete demand and litigation posture for Noah.

Q75 key (Operations Analyst Overtime)

1. Noah performs office work related to operations, but Transit Grove cannot prove independent judgment on matters of significance. He applies a 42-page matrix, acts within preset limits, and escalates deviations; operational importance does not replace discretion. The administrative exemption fails. Missed: salary, title, and network impact are treated as the duties test.
2. The HR warning and vice president's deliberate budget response establish knowing or reckless disregard. The three-year period applies, capturing all 120 weeks. Good-faith liquidated-damages relief also fails. Missed: 16 early weeks and the damages multiplier are lost.
3. Regular rate is $1,200 divided by 40, or $30 per hour. Overtime rate is $45. Missed: salary is spread across all hours or only the half-time premium is paid contrary to the supplied agreement.
4. First 80 weeks: 10 overtime hours per week times $45 times 80 equals $36,000. Final 40 weeks: 6 overtime hours times $45 times 40 equals $10,800. Total unpaid overtime is $46,800. Missed: hours or periods are blended into an unverifiable estimate.
5. Liquidated damages equal $46,800, producing total wage recovery of $93,600 before attorney fees and costs. Missed: the client demands only back wages or double-multiplies the total.
6. Demand $93,600 plus statutory fees and costs, attach the duties record and HR email, and prepare for early summary judgment or settlement on exemption and willfulness. Missed: Noah bargains from a two-year, single-damages figure the documents defeat.