Too Many Managers: The Strategic Use of Titles to Avoid Overtime Payments

Cohen, L., Gurun, U. G., & Ozel, N. B. (2023). Too Many Managers: The Strategic Use of Titles to Avoid Overtime Payments: The Strategic Use of Titles to Avoid Overtime Payments.

Type

Report

Intellectual base

Grey literature

Year

2023

Link

https://www.nber.org/papers/w30826

Cited from

economics_finance

Cited by

1 citation across 1 artifact.

Each citation links to the sentence it supports in the citing article.

Primes

• Signal Devaluation
  • Title inflation. Vice-President proliferation and C-suite bloat erode titles' information about seniority and responsibility; external readers adapt by reading titles alongside firm context.

    This sourceDocuments the proliferation of nominal managerial/senior titles (a near-fivefold jump in 'manager' titles just above the overtime-exemption threshold), evidence that titles inflate as discriminators of seniority under issuer incentives.

    Supported in partVerified against the publisher's abstract

    Documents strategic inflation of 'manager' titles just above the FLSA overtime threshold; it says nothing about vice-president or C-suite titles, seniority signalling, or how readers interpret titles.

    “We find widespread evidence of firms avoiding overtime payments through the strategic use of “managerial” titles. Exploiting a federal mandate in the Fair Labor Standards Act (FLSA), we find an almost five-fold increase in managerial title usage just over the regulatory threshold to avoid overtime payment, including suspect managerial listings such as “Directors of First Impression,” whose jobs are otherwise …”

    Read by an automated reader; not a human review. How support was checked

Verification

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