Hannaford Supermarkets Introduces Paid Overtime for Middle Management

Hannaford Supermarkets, one of the largest private employers in Maine, has announced that hundreds of middle managers will henceforth receive pay for overtime that was previously unpaid. With this measure, the company aims to enhance employee satisfaction and improve recruitment and retention of staff in times of labor shortages. However, the affected managers will now have to work 45 hours per week to earn the same salary they previously received for 40 hours. This change follows recent lawsuits accusing Hannaford of violating overtime regulations. The company, however, denied any connection with the Biden administration's efforts to expand overtime regulations for middle managers. Middle managers, who were previously exempt from overtime regulations, will be classified as non-exempt employees starting Sunday. These changes affect about 4% of Hannaford's workforce and are intended to offer flexible working hours, according to company spokesperson Caitlin Cortelyou. Overtime is not mandatory, yet the salary could decrease if less than 45 hours are worked. Amidst these adjustments, Tasha Vye, a former bakery manager at Hannaford, has filed a lawsuit accusing Hannaford of violating the Fair Labor Standards Act. The lawsuit may proceed as a class action. Hannaford has not yet been officially notified and declined to comment. The company faces the challenge of recruiting and retaining staff in a tight labor market. The salary adjustments due to changes in federal regulations are a response to employee feedback desiring compensation for actual hours worked. A 2023 study indicates that companies are increasingly bestowing managerial titles to avoid paying overtime. The current salary threshold for overtime exemption will rise again in January, making the legal landscape challenging. Whether this will lead to new legal disputes remains to be seen.