LAS VEGAS — The subject of a U.S. Department of Labor Wage and Hour Division investigation, a Las Vegas limousine company was found to be in continuous violation of state minimum wage laws in addition to the Fair Labor Standards Act, according to Fox 5 Vegas.
However, unlike previous cases of companies violating state and federal labor law, the company did not attempt to fight the allegations brought against them by the Department of Labor investigation. The company immediately complied with the Department of Labor demands and agreed to pay their employees $239,555 in previously withheld pay.
The payment will be spread among 88 company employees. The financial compensation will attempt to correct the company forcing workers to earn payment solely through commission which never approached the necessary $7.25 per hour minimum wage mandated by federal law.
Additionally, workers who were required to work more than 40 hours per standard 7-day work week, which constitutes overtime, were never paid an adequate overtime wage.
Gaspar Montanez, director of the department’s Wage and Hour Division in Las Vegas, offered the following, “These drivers have been working long hours to support their families. Thanks to this settlement, dozens of workers will receive their rightfully-earned wages.”
Frequently Violated Nevada Labor Laws
In major cities like Las Vegas, companies often attempt to manipulate records or employ wage tactics to cut labor costs and maximize their profitability. These practices often result in employees being paid far less than they are entitled to earn but are difficult for government agencies to detect unless an employee comes forward and reports their employer.
Nevada has a unique minimum wage policy in that there are different wage floors depending on the additional benefits an employer offers their employees. If qualifying health benefits are offered to an employee, an employer is only required to offer them a wage of $7.25 per hour. However, if health benefits are not offered the employer must pay their employees a minimum wage of $8.25 per hour.
Companies often attempt to avoid paying either wages by claiming their employees make or surpass the minimum wage through commission or tips. This claim is too commonly proved false after a Department of Labor investigation.
Major employers also are frequently found to skirt overtime pay laws outlined by the Fair Labor Standards Act which require all employees to be paid 150% of their standard wage for all hours worked over 40 in any standard 7-day work week. Oftentimes, employers will manipulate time records, neglect to record hours worked, or simply refuse to pay the elevated wage in order to save on costs.
Either of these aforementioned practices are illegal and employees retain the right to pursue just legal action against their employers in the event that they are subjected to these practices.
Call (855) 754-2795 or fill out the Free Unpaid Overtime Case Review form on the top right of this page to begin the process of determining if you employer violated state or federal labor laws. If it is determined that you subjected to labor law violations, you can file a lawsuit against your employer to recover any previously withheld wages.