ELKHART, IN – The U.S. Department of Labor’s Wage and Hour Division and an Indiana recreational vehicle manufacturer have reached an agreement to resolve overtime and minimum wage violations at nine production plants in Elkhart and Wakarusa.
Thor Motor Co. of Elkhart, has paid 386 workers a total of $59,514 – representing $29,757 in back wages and an equal amount in damages.
Division investigators found violations of the Fair Labor Standards Act (FLSA) occurred when recruitment bonuses paid to employees were not included in overtime rate calculations, resulting in workers being paid less than they were legally owed. The hourly rate earned by some piece rate workers fell below the minimum wage, and the company paid time-and-half on those same sub-minimum wage rates when calculating overtime for piece-workers. The company also failed to keep accurate records of hours worked.
“Failing to properly compute wages for piece workers and include bonuses when computing an employee’s regular rate of pay for overtime pay denies worker’s their rightfully earned wages,” said Wage and Hour Division District Director Patricia Lewis, in Indianapolis. “We encourage all businesses to take advantage of the Division’s education and outreach efforts to help them understand their responsibilities and how to properly calculate pay rates.”
Thor Motor Coach is a subsidiary of Thor Industries, Inc., the parent company of 12 RV manufacturing companies located in the Midwest.
Workers and employers with questions can get more information about this topic and all of the federal wage laws administered by the Division by calling the agency’s toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential. More information is available online at http://www.dol.gov/whd/.