"This company benefited by not paying employees all the wages they were entitled to receive," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "Car wash employees are among the most vulnerable employees in the workforce. The Labor Department remains committed to protecting the rights and wages of these workers and to leveling the playing field for employers who play by the rules. The back wages paid in this case should serve as a warning to other employers to ensure that they are paying their employees in compliance with the laws."
An investigation by the Wage and Hour Division's Dallas District Office found that the company's timekeeping system always rounded time worked in the employer's favor, resulting in paying employees for fewer hours than they had actually worked. Such shortages created minimum wage violations when employees' pay fell below the federal minimum wage of $7.25 per hour. The employer also failed to pay employees overtime at time and one-half their regular rates of pay for hours worked beyond 40 in a workweek.
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Source: U.S. Department of Labor
This information is intended to be
educational and should not be considered legal advice on any specific matter.
