Hannaford Makes Midlevel Managers Eligible For Overtime

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Hannaford Supermarkets, one of Maine's largest private employers, has announced it will start paying hundreds of midlevel managers for overtime hours that previously went unpaid.

The company says the move is meant to boost employee satisfaction, retention and recruitment amid a labor shortage that has many people working overtime.

But some impacted workers may see little change – or even a cut in pay – because they'll have to work 45 hours per week to earn the same salary they got for 40.

The change follows recent federal lawsuits charging Hannaford with overtime violations, including one filed Wednesday in Maine that company officials declined to talk about for this story. The company also says the shift in overtime policy has nothing to do with the Biden administration's ongoing effort to expand overtime pay requirements for middle managers.

Hannaford has notified department managers, evening operations managers and associate relations managers that starting Sunday, they will be reclassified from overtime-exempt salaried personnel to nonexempt salaried personnel.

The responsibilities of affected managers won't change, and they will remain eligible for all salaried benefits, including annual performance bonuses, Cortelyou said.