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Auto Care Company to Pay Nearly $48K in Overtime Wages for Employee Misclassification

October 6, 2011

In continuing the department's fight against employee misclassification in the workplace, the U.S. Department of Labor's Wage and Hour Division (WHD), has recently found an Oklahoma-based auto care company responsible for improperly classifying their workers, as well as violating the Fair Labor Standards Act, (FLSA) by failing to pay them overtime compensation.

According to the DOL investigation, that our Santa Ana employment attorneys have been following, Precision Tune Auto Care Inc., was found to have misclassified forty former and current automotive technicians, as exempt from overtime compensation, and paid them a base salary for every worked which often totaled fifty hours a week--failing to pay the workers overtime compensation for every hour worked beyond forty in a work week.

As our Carson employment attorney blog has reported in a related post, employment misclassification is a growing problem, posing a serious threat to vulnerable workers who have the legally entitled right to employment that pays fairly. Misclassifying employees and violating wage and hour regulations of FLSA are common ways that employers cheat vulnerable workers out of their hard-earned wages. Employee misclassification is also unfair to honest employers who follow the FLSA's guidelines, as it gives employers who don't play by the rules a competitive advantage--by dodging minimum wage and overtime pay and forcing workers to pay taxes that employers are legally obligated to pay under law.

According to the FLSA, "non-exempt" employees covered by the act are required to be compensated with at least the federally mandated minimum wage, which is $7.25 for all hours worked. The FLSA requires that non-exempt employees who are covered under the act, are entitled to overtime compensation which is one and a half times their regular compensation rates per hour when working more than 40-hours in a workweek, including incentive pay, bonuses and commissions.

Employees are also required by federal labor law to be paid time and a half when they work over eight hours on the seventh straight day in a workweek. For all hours worked over twelve in a workday, employees must be paid double their regular rate, as well as double time over the eight hours of work on the seventh straight workday in a workweek. Employers often make mistakes calculating how much overtime workers are actually owed, when they work past forty hours in a week, which can also lead to wage and hour violations.

The auto care company which provides automobile engine repairs and tune-ups, has agreed to pay the forty employees a total of $47,469 in back wages, as well as promising to comply with the FLSA in the future.

Bethany, Okla.-based auto care company to pay more than $47,000 in overtime back wages to 40 employees following Labor Department investigation, U.S. Department of Labor, Wage and Hour Division, October 4, 2011

Related Web Resources:

The Department of Fair Employment and Housing (DFEH)

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)

Department of Labor (DOL): Wage and Hour Division (WHD)

Related Blog Posts:

DOL and IRS Combine Forces to Combat Employee Misclassification, California Employment Lawyers Blog, September 26, 2011

Renal Advantage Sued in Employee Misclassification Lawsuit, California Employment Lawyers Blog, September 6, 2011

T. J. Maxx Retail Chain Sued For Employee Misclassification, California Employment Lawyers Blog, August 25, 2011

Employee Misclassification Leads to Nearly $1M in Back Pay for 30 Restaurant Workers, California Employment Lawyers Blog, August 24, 2011

DOL Forces Texas Company to Pay $433K in Back Wages For Employee Misclassification, California Employment Lawyers Blog, August 5, 2011

CA Drug Sales Reps Sue Novo Nordisk in Class Action Wage and Hour Lawsuit, California Employment Lawyers Blog, July 28, 2011

Aon Corp. Settles Employee Misclassification Lawsuit for $10.5M , California Employment Lawyers Blog, July 8, 2011

"White Collar" Exemptions under the FLSA, California Employment Lawyers Blog, November 12, 2010

U.S. Labor Department Launches "We Can Help" Campaign to Enforce Wage and Hour Laws, California Employment Lawyers Blog, April 2, 2010

"Exempt" vs. "Non-exempt" in the California Workplace, California Employment Lawyers Blog, April 15, 2010