A Recent Consultation 

Sandra called us last month. Her company promoted her to “Assistant Manager” six months ago and told her she was no longer eligible for overtime pay. She was working 55-60 hours a week but only getting his base salary plus a ¥15,000 monthly “management allowance.” 

We asked Sandra some questions: 

• Can you hire or fire people? 

     “No, my boss handles all that.” 

• Do you set your own schedule?  

     “I have to be here 9-6, same as everyone else.” 

• Are you in management meetings?  

     “Just our weekly team updates.” 

• How much more are you making? 

     “About ¥15,000 extra per month.” 

Our assessment:  Sandra had been made a manager simply to deny her overtime pay. Her “promotion” was costing her about ¥80,000 per month in lost overtime. 

Sound familiar? Just because your company calls you a “manager” doesn’t mean you’re actually exempt from overtime payments and if you’re working long hours without overtime pay, you might be getting ripped off too. 

What Actually Makes Someone Exempt from Overtime? 

Under Article 41 of the Labour Standards Act, only certain management-level employees called kanri kantokusha (管理監督者) in Japanese,  can be exempt from overtime, holiday, and break-time protections.  

But here’s the key: the company simply can’t decide who is a management level employee and deprive them of benefits as there are 

rather clear conditions that must be met. 

The Four Tests: Are you really a management level employee? 

Japanese labour offices use these criteria to decide whether someone is genuinely exempt. Those who meet all four conditions can be classified as management level employees. 

 1. Real Decision-Making Power 

• You must actually influence major company decisions—hiring, firing, budgets, business strategy 

• Just supervising your team’s daily tasks? That doesn’t count 

• Being responsible for sales targets or project deadlines? Still doesn’t count 

 2. True Control Over Your Schedule   

• You set your own hours with genuine flexibility 

• Red flags: Clocking in/out, fixed schedules, being told when to arrive/leave 

• Even choosing from preset time slots still counts as a company-controlled schedule 

 3. Manager-Level Pay 

• Your salary should reflect the loss of overtime pay—think substantial increase, not token amounts 

• A ¥20,000 “manager allowance”? That’s probably not enough 

• Reality check: If overtime would pay you more than your salary increase, you’re probably misclassified 

 4. Treated Like Actual Management 

• Attending real management meetings (not just team updates) 

• Access to confidential business information 

• Making decisions without needing approval from above 

• Not being micromanaged by your own supervisor 

Important Things Companies Often Get Wrong 

It’s all or nothing. The complete situation must be examined—you can’t qualify based on just one or two factors. 

Your job title means nothing. “Assistant Manager,” “Team Leader,” “Supervisor”—these are just words. What matters is what you actually do. 

Night shift premiums still apply. Even genuine managers must get 25% extra pay for work between 10 PM and 5 AM. Many companies illegally skip this. 

Are you in this boat? Sandra was. 

Common scenarios we see: 

• “Team Leader”: but she couldn’t hire or fire anyone 

• “Manager”: but she still had to punch the time clock 

• “Supervisor”: but needed approval for basic decisions 

• “Management Allowances”: she got a pittance instead of proper overtime pay 

Does any of this sound familiar to you? 

Don’t Get Fooled Like Sandra and Act Now 

Why time matters: 

• Back pay claims have time limits 

• The longer you wait, the more money you lose 

• Your employer won’t fix this voluntarily 

Ready to find out if you’re being ripped off? 

• Consult: genu.cc/consult 

• Join us: genu.cc/join 

Remember: You have rights. We’ll help you enforce them.