U.S. Department of Labor Investigation Results in Tennessee Tire Manufacturer Paying $659,268 in Back Wages and Damages
CLARKSVILLE, TN – Hankook Tire Manufacturing Tennessee LP – based in Clarksville, Tennessee, and a subsidiary of Hankook Tire America Corp. – has paid $659,268 in back wages and liquidated damages to 136 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).
WHD investigators determined the employer failed to pay some employees overtime until after they had worked 45 hours in a workweek. The law requires overtime at time and one-half an employee's regular rate of pay when they work beyond 40 hours per week. When the employer did pay overtime, it failed to include shift differentials and additional hourly bonuses when calculating employees' overtime rates. These exclusions resulted in the employer paying overtime at rates lower than those required by law. WHD also found that Hankook violated FLSA recordkeeping requirements by failing to display the federal FLSA poster, as required.
"Employers must pay employees all of the wages they have legally earned," said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. "The result of this investigation serves as a reminder to all employers to review their legal obligations and to contact the Wage and Hour Division for compliance assistance. Violations like those in this case can be avoided."
For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.