Fayetteville motorcycle company’s pay practices violated federal law, US Department of Labor recovers $96K in back wages, damages
FAYETTEVILLE, NC – Sixty-one workers of a Fayetteville motorcycle repair and sales company received wages owed to them after the U.S. Department of Labor found their employer’s pay practices denied them overtime wages in violation of the Fair Labor Standards Act.
In its investigation, the department’s Wage and Hour Division found Flip My Cycle Inc. failed to keep accurate records and pay proper overtime. When employees worked more than 40 hours in a workweek, the employer attempted to avoid overtime requirements by labeling those hours as bonuses, miscellaneous pay or commissions. The employer paid only straight-time pay for the overtime hours, an FLSA violation. The employer also failed to include certain performance bonuses in the computation of overtime pay. By law, employers must pay overtime wages – in most cases – for hours worked over 40 in a workweek.
The division’s investigation led to the recovery of $48,315 in back wages and $48,315 in liquidated damages for 61 workers.
“Employers who fail to pay workers all their hard-earned wages make it harder for workers to make ends meet, and the employer gains an unfair advantage over their competitors who comply with the law,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “Employers should review their pay practices and contact the Wage and Hour Division with questions to avoid violations like those in this case.”
Learn more about the Fair Labor Standards Act and other laws enforced by the division, contact its toll-free helpline at 866-4US-WAGE (487-9243). The Wage and Hour Division offers additional information, including a search tool to use if you think you may be owed back wages collected by the division.
Read this news release En Español.