This week, the United States Department of Labor issued a press release detailing an investigation into unpaid overtime wages by Alliance RV. The investigation found that over the course of two years, Alliance failed to properly compensate more than 700 of its warehouse workers for piece-rate work they did beyond the standard 40-hour work week.
In total, the DOL found that $1.15 million in wages were missing. They demanded that Alliance issue back payments to the affected workers.
Alliance RV is a relatively new manufacturer, with its first production facility breaking ground in 2019. The company is headquartered in the “RV capital of the world”—Elkhart, Indiana—right near the monolithic Thor Industries. They primarily specialize in luxury fifth wheels and trailers and offer three distinct product lines: Paradigm, Valor, and Avenue.
Alliance prides itself on its company mission statement “Do the Right Thing,” which they proudly hang from its warehouse facility’s walls. The Department of Labor’s findings seems to question this statement’s authenticity.
Rather than paying a flat hourly rate to its workers, Alliance RV pays employees for each product they produce. Theoretically, this is to incentivize production efficiency as it generally results in higher pay the harder you work.
The Fair Labor Standards Act declares that employees’ piece-rate pay divided by the hours they work must still meet minimum wage laws....
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