U.S. Department of Labor Investigation Results in Michigan Towing Company Paying $58,551 in Overtime Back Wages to 66 Employees
CLINTON TOWNSHIP, MI – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Elite Road Service LLC – based in Clinton Township, Michigan – has paid $58,551 in back wages to 66 current and former employees to resolve violations of the overtime requirements of the Fair Labor Standards Act (FLSA).
WHD investigators determined the towing company paid tow truck drivers on a commission basis, without regard to the number of hours that they worked. The employer violated FLSA overtime provisions by failing to pay overtime when drivers worked more than 40 hours in a workweek. Investigators also found that the employer paid dispatchers flat weekly salaries, regardless of the number of hours that they worked, which led to additional violations when the employer failed to pay overtime when those employees worked more than 40 hours in a workweek. Failing to keep accurate records of the number of hours employees worked also violated the recordkeeping requirements of the FLSA.
“Simply paying employees a salary, or on a commission basis, does not mean that they are not entitled to overtime when they work more than 40 hours in a workweek,” said Wage and Hour Division District Director Timolin Mitchell, in Detroit, Michigan. “Employers should routinely review their pay practices to ensure they comply with the law. We encourage them to contact the Wage and Hour Division to understand their responsibilities better so that they can avoid similar violations. Wage and Hour professionals are available to answer questions and provide compliance assistance.”
The department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.
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/agencies/whd.
WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.
The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.