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