Lauren H. Cohen is the L. E. Simmons Professor of Business Administration at Harvard Business School, Umit Gurun is the Stan Liebowitz Professor of Accounting at the University of Texas at Dallas, and N. Bugra Ozel is an Associate Professor of Accounting at the University of Texas at Dallas. This post is based on their recent paper.
The common perception of managerial positions is that they come with more responsibility and oversight authority. For instance, managers frequently oversee budgets and work schedules, Additionally, they can influence recruiting, promotion, and firing decisions. Managers often receive higher salaries, additional types of compensation (such as bonuses), and perquisites than non-managerial staff in keeping with their increased responsibility. “Managers” are recognized as a distinct and distinctive class by the Federal Government, as well. In fact, to determine who is eligible for overtime compensation, the federal government has gone so far as to establish a law that distinguishes between managers and normal employees.
The Fair Labor Standards Act §7(g) (hereafter FLSA) exempts employers from making overtime payments to employees who are “managers” and are paid a salary above a threshold. Using this provision, we investigate whether firms appear to strategically assign titles to exploit regulatory thresholds to avoid paying for overtime work. For instance, we investigate the extent to which companies hire employees with potentially deceptive...
Patricia White, 70, of Old Greenwich, received a nine-month prison sentence for submitting false claims for unclaimed properties to around 30 state treasuries. HARRISBURG, Pa. — Months after her br...