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:
Related Blog Posts:
Courtney Love Sued for Wage and Hour Violations, Wrongful Termination, California Employment Lawyers Blog, July 19, 2012
Celine Dion Sued for Employee Misclassification, Wage and Hour Violations, California Employment Lawyers Blog, July 10, 2012
Rite Aid to Pay Over $20M in Class Action Wage and Hour Lawsuit Settlement, California Employment Lawyers Blog, June 19, 2012
DOL Launches Los Angeles-area Restaurant Enforcement Initiative to Combat FLSA Violations, California Employment Lawyers Blog, May 3, 2012
Los Angeles Thai Restaurants Sued by DOL for Overtime Violations, Retaliation, California Employment Lawyers Blog, April 11, 2012
California Restaurant Ordered to Pay Workers Nearly $404K in Back Wages, Damages, California Employment Lawyers Blog, California Employment Lawyers Blog, March 18, 2012
DOL Launches Employee Misclassification Initiative in Seattle-based Nail Salons, California Employment Lawyers Blog, March 12, 2012
Celebrity Chef Mario Batali to Pay $5.25M in Class Action Wage and Hour Lawsuit, Settlement Over Tips, California Employment Lawyers Blog, March 8, 2012
DOL Continues to Track Down Federal Wage and Hour Law Violations in the Workplace, California Employment Lawyers Blog, September 8, 2011
Another DOL Investigation Brings Restaurant Employees $275K in Overtime Back Wages, California Employment Lawyers Blog, July 18, 2011