Wage and Hour Division (WHD)
U.S. Department of Labor
US Department of Labor recovers nearly $56,000 in back wages for employees of auto dealership in Milton, Fla.
McKenzie Motors agrees to correct minimum wage, overtime and record-keeping violations
MILTON, Fla. -- The U.S. Department of Labor has recovered $55,807 in back wages for 17 employees of McKenzie Motors, a Buick GMC dealership in Milton, following an investigation by the department’s Wage and Hour Division that found violations of the minimum wage, overtime compensation and record-keeping provisions of the Fair Labor Standards Act.
“The Labor Department is actively investigating cases where employees are not receiving the full compensation they are owed,” said Michael Young, director of the Wage and Hour Division’s Jacksonville District Office, which investigated this case. “Employers are legally obligated to ensure that those they hire are properly compensated for their full work periods. Companies need to keep accurate records of the hours worked by all employees.”
After interviewing employees and reviewing the company’s records, investigators determined that 15 automobile sales personnel were paid weekly and monthly commissions regardless of hours worked. While these employees are exempt under the FLSA from receiving overtime compensation, in some weeks they did not make sufficient commissions to meet the required federal minimum wage for the hours worked. The company also violated the FLSA’s record-keeping provisions by failing to maintain accurate records of the hours worked by sales staff.
Additionally, the company improperly classified two other employees as exempt from overtime wages; as a result, they did not receive proper compensation for all hours of their work.
McKenzie Motors has paid all back wages owed to employees and agreed to future compliance with the FLSA, including ensuring that sales employees are paid at least the statutory minimum wage for all hours worked or commissions, whichever is higher. As part of the agreement, all employees will document their hours on timesheets.
The FLSA requires that covered nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, and time and one-half their regular rates of pay for hours worked beyond 40 in a week. Employers also must maintain accurate time and payroll records. Information on the FLSA specific to automobile dealers is available at http://www.dol.gov/whd/regs/compliance/whdfs11.pdf.
The Wage and Hour Division’s Jacksonville office can be contacted at 904-359-9292. For more information about the FLSA and other federal wage laws, call the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at http://www.dol.gov/whd.
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