DOL finds auto repair facility failed to properly pay overtime.
U.S. Department of Labor (DOL) Wage and Hour Division investigators found A&G Auto Service and Repair Inc., operating as Magic Wheels Auto World Inc. located in Brookville, Fla. paid a salary for all hours employees worked and did not pay the required half-time for overtime hours worked.
According to the DOL, the employer also misapplied overtime exemptions for two supervisors who failed to meet the criteria for an exemption. Additionally, the division found the employer misclassified three individuals as independent contractors and paid them on a salary basis as well, failing to pay them for overtime hours worked, all Fair Labor Standards Act violations.
The DOL recovered $72,174 in back wages and liquidated damages for 12 employees.
“As employers struggle to find the people they need to operate their businesses successfully, retaining and recruiting workers will be more difficult for employers who violate workers’ rights to be paid their full wages and benefits,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “In fiscal year 2021, the division recovered more than $4.3 million in back wages for more than 3,500 workers in the auto repair industry where we too often find employers in violation of the law. We encourage others to review their pay practices or risk losing the workers they need to keep their shops running.”