Auto Body Shop to Pay $400,000 in FLSA Case
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Friday, August 31, 2018 |
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The U.S. District Court for the Eastern District of New York has entered a consent judgment requiring Paul Dill Associates Inc. and its two owners, Paul Joseph Dill and Paul Jeremy Dill - doing business as Bi County Auto Body - to pay $185,000 in back wages and an equal amount in liquidated damages to 49 employees, plus $30,000 in civil penalties. The judgment follows an investigation by the Department of Labor’s Wage and Hour Division that identified violations of the Fair Labor Standards Act (FLSA) by the Smithtown, New York, auto body repair business.
Investigators from WHD’s Long Island District Office found that between July 2014 and April 2016, the employer violated the FLSA’s overtime requirements when they paid 49 employees straight time rates, in cash, for all the hours they worked beyond 40 in a workweek. The FLSA requires overtime for those hours at one and one-half times workers’ regular rates of pay.
The employer also deducted one hour per day from employees’ time for a meal break even though employees were often unable to take those breaks uninterrupted by work. Those unpaid hours resulted in additional overtime violations. Recordkeeping violations were cited when the employer willfully failed to record any hours that employees worked beyond 40 per workweek, in an attempt to conceal overtime.
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