California Court of Appeal Holds "No Overtime" for UPS Supervisor


In Taylor v. UPS (Dec. 9, 2010), a California Court of Appeal ruled that Plaintiff, a UPS supervisor, qualified under both the California executive and administrative exemptions in each of the three supervisory positions he had worked at UPS.

Plaintiff ("Taylor") had been an air hub supervisor, an on-road supervisor, and a center manager. As an air hub supervisor, Taylor supervised the unloading and sorting of packages received by the UPS facility where he worked. As an on-road supervisor for a smaller facility, Taylor supervised a specific team of UPS truck drivers and the facility's sorting and car-wash operations. In his third position as center manager, Taylor oversaw all operations within a UPS package center. Taylor sued UPS, claiming that all three positions were misclassified as exempt, and sought unpaid overtime and nonexempt benefits.

The court explained that Taylor qualified under the executive exemption if he (1) managed "the enterprise or a 'customarily recognized department or subdivision thereof'"; (2) regularly supervised two or more employees; (3) had the power to hire or fire, or had "particular weight" in decisions to hire, fire, promote, or demote employees; (4) regularly used discretion and independent judgment; (5) primarily performed executive exemption duties; and (6) had a salary at least twice the California minimum wage for full-time employment. Taylor conceded that all of his supervisory positions met the second and sixth elements, but argued the other four elements were absent.

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