Companies save billions of dollars by giving employees fake "manager" titles, study shows
Calling your retail clerk an "assistant store manager" has a surprisingly big payoff, new research finds.
Hasnain says:
"But companies continue strategic title-fudging because, well, it pays. In 2019, a year when the Department of Labor won $226 million in back wages for cheated workers, companies saved roughly 18 times that amount by calling frontline workers doing ordinary jobs "managers," the paper found.
"The incredibly high [return on investment] on this activity of avoiding overtime wages might explain why we see firms across every industry — from Staples to JPMorgan, to Facebook, to Walmart, to Verizon, to Avis, to Lowes — engaging in this activity even up through the present day," the paper said."
Posted on 2023-02-03T22:58:52+0000