More than 700 workers reportedly affected
Federal investigators have collected $1,158,536 in back pay for overtime worked by 710 employees of a recreational vehicle company in Elkhart, IN.
For over two years, the employer incorrectly computed overtime compensation for piece-rate employees. The Wage and Hour Division of the United States Department of Labor discovered that Alliance RV LLC paid less per piece in weeks when workers worked more than 40 hours.
Employees received less overtime compensation than they were entitled to under the Fair Labor Standards Act as a result. Alliance pays piece wages to assembly line workers who build recreational travel trailers, towable trailers, and fifth-wheel campers under the Paradigm, Valor, and Avenue brand names.
Basic pay requirements under the Fair Labor Standards Act
The Act requires employers to pay covered employees who are not otherwise excluded a minimum wage of at least $7.25 per hour.
During the first 90 consecutive calendar days of employment with an employer, youths under the age of 20 may be paid a minimum wage of not less than $4.25 per hour. Additionally, employers may not fire employees to recruit someone at the juvenile minimum wage.
Employers may pay employees on a piece-rate basis as long as they are paid at least the legal minimum hourly wage rate and overtime for hours worked more than 40 in a workweek. Employers of tipped employees (those who get more than $30 in tips per month) may count such tips as part of...
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