NASHVILLE, Tenn. — A Tennessee car dealership recently agreed to settlement with the U.S. Department of Labor in an unpaid overtime lawsuit to resolve claims that the company violated various provisions of federal labor and wage laws, including failure to pay minimum wage.
As part of the settlement, Kingsport-based Rick Hill Imports Inc. agreed to pay a combined $58,739 in back wages, interest, and damages to 20 current and former employees.
An investigation by the Labor Department’s Wage and Hour Division determined that Rick Hill Imports violated the Fair Labor Standards Act (FLSA) when it failed to pay its workers the federal minimum wage of $7.25 per hour. The investigation found that the company did not pay workers on weeks when the individuals did not make any sales.
Federal investigators also determined that Rick Hill Imports required its sales staff to attend mandatory vehicle manufacture certification training, and employees received no compensation for those hours worked, either. As a result, the worker average hourly rate of pay fell below the national minimum wage.
“A commission-based pay practice does not alleviate an employer’s responsibility to pay its employees at least the minimum wage rate for all hours worked,” said Nettie Lewis, Wage and Hour Division District Director in Nashville. “We encourage all employers to review their pay practices and contact the Wage and Hour Division for compliance assistance. Doing so can help ensure all employees are paid properly and that all employers operate on a level playing field.”
While the Labor Department does its best to recover back pay for wage theft victims, the Department cannot investigate and prosecute every single violation of the FLSA.
Fortunately, the law gives wage theft victims the right to hire their own unpaid overtime lawsuit attorneys to file claims in federal court and recover up to three years of back pay with interest, liquidated damages equal to unpaid earnings, attorneys fees to cover the cost of litigation, and any other damages the court may see fit to award.
Auto Sales Worker Unpaid Overtime Lawsuit
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Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice. Our office will also determine if it is in your best interest to file a lawsuit against your employer.
Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.