Grace v. Family Dollar Stores, Inc.
2012 U.S. Dist. LEXIS 24144
W.D.N.C.2012Background
- Echols began as assistant manager at Family Dollar Store 269 in 2002 and was promoted to store manager with salary increases up to $635/week by 2005.
- She resigned in July 2006 after averaging 55.24 hours/week as store manager.
- Record shows most nonexempt store employees earned about $6.25/hour; Echols averaged far higher wages via salary.
- Echols supervised and directed employees daily and handled management tasks such as scheduling, training, discipline, and reviews.
- She retained significant managerial responsibilities including store safety, budgeting-related tasks, and merchandising decisions, while district management provided limited supervision.
- Court granted summary judgment in favor of Family Dollar, deeming Echols exempt under FLSA based on the described duties and compensation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Echols is exempt under the salary basis test. | Echols earned a substantial salary above threshold. | Employer satisfied salary basis requirements under pre-2004 and current regs. | Yes; salary basis met under both regimes. |
| Whether Echols’ primary duty was management of the store. | Primarily non-managerial duties dominated. | Management duties were primary and integral to store operation. | Yes; Echols’ primary duty was management. |
| Whether Echols regularly directed two or more employees. | Directed only minor supervision, not two or more employees. | Directed at least two full-time employees regularly. | Yes; Echols directed two or more employees regularly. |
| Whether Echols had authority to hire/fire or weight of recommendations on hiring/promotion. | Recommendations not given particular weight or impact. | Recommendations were given particular weight and followed by district manager. | Yes; Echols’ recommendations had particular weight. |
Key Cases Cited
- Grace v. Family Dollar Stores, Inc., 637 F.3d 508 (4th Cir. 2011) (bank of factors supporting executive exemption)
- Thomas v. Speedway SuperAmerica LLC, 506 F.3d 496 (6th Cir. 2007) (multistate store supervision and discretion upheld)
- Murray v. Stuckey's, Inc., 50 F.3d 564 (8th Cir. 1995) (policies may exist but do not eliminate manager discretion)
- Baldwin v. Trailer Inns, Inc., 266 F.3d 1104 (9th Cir. 2001) (managerial tasks may be exempt even if nonexempt duties are performed)