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Viva Auto Group to Pay $797K in Back Pay for Violating FLSA's Wage and Hour Laws

August 1, 2012

As Vincent Howard frequently discusses in our Howard Law California employment lawyers blog, under the federal Fair Labor Standards Act, (FLSA) employees who are covered by the act must receive minimum wage compensation of at least $7.25 per hour worked, plus overtime compensation of one and one-half their normal payment rates for any hours worked beyond forty hours in work week, which includes incentive payments, commissions, and any bonuses.

In a recent press release from the U.S. Department of Labor (DOL), an El Paso, Texas-based auto sales company was recently found by the DOL's Wage and Hour Division (WHD) to have violated provisions of the Fair Labor Standards Act in the company's eight locations, including failing to pay employees minimum wage.

The WHD investigation reportedly found that Viva Auto Group, a company that sells used and new automobiles, made illegal deductions from the employees' compensation for mandatory training, and for any charged fees related to rewarding customers for referring friends and family members to the auto sales company. Viva Auto Group also reportedly compensated employees with less than the federal minimum wage, and failed to compensate them for all hours that the employees worked. Accurate time and payroll record keeping was also not maintained, which is required under the FLSA.

Viva Auto Group has agreed to pay over $797,405 in back minimum wages to 480 former and current sales employees, and has agreed to comply with the FLSA in the future. According to the WHD, it is imperative that employers understand that their employees must be compensated for all hours worked, which includes payment for mandatory training.

The violations were found at Viva Auto Group, Viva Chevrolet, Viva Dodge, Viva Kia, Viva Mitsubishi, Viva Nissan, Bestway Auto, and Viva Collision Center in El Paso.

In cities throughout Orange County, California, contact Howard Law's experienced team of labor and employment attorneys and professionals let by managing partner Vincent Howard today, to discuss your California wage and hour rights.

El Paso, Texas, auto sales company agrees to pay workers more than $797,000 in back minimum wages following US Department of Labor investigation, U.S. Department of Labor Press Release, July 19, 2012

Related Web Resources:

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

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

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