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Department Of Labor Recovers $306k In Wages For 21 Auto Repair Workers

Department Of Labor Recovers $306k In Wages For 21 Auto Repair Workers

May 3, 2018
Updated On:
May 3, 2018

Farmingdale Auto Collision will pay $306,000 in back wages and liquidated damages to 21 employees to resolve violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

The Department of Labor found that the Farmingdale auto body and paint shop typically paid employees by check for their first 40 hours of work, but paid many of them in cash at rates less than or equal to their regular hourly rates for their overtime hours. The FLSA requires employers to pay employees overtime at time-and-one half for any hours worked beyond 40 per workweek. In addition, the Department of Labor also found that Farmingdale Auto failed to keep accurate records of hours worked by its auto body shop employees. 

“Employers that pay employees less than what they have legally earned shortchange these hard-working people and gain an unfair advantage over competitors that abide by the law,” said a Department of Labor District Director in Long Island. “We encourage all employers to use the tools and resources the Wage and Hour Division provides to learn about their legal responsibilities, avoid violations, and operate in compliance with the law.” “This settlement and the resulting payment of back wages and damages demonstrates the U.S. Department of Labor’s commitment to using all available tools, including litigation, to ensure that employees are properly compensated for their work, and that employers compete on a level playing field,” said another representative.

The lawsuit also prohibits Farmingdale Auto Collision from future FLSA violations and from retaliating against, or soliciting repayment of recovered wages from the employees.

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