May 16, 2019—After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Leschak Automotive Inc.—an auto repair shop based in West Mifflin, Penn.—has paid $15,445 in back wages and an equal amount in liquidated damages to 10 employees to resolve violations of federal overtime requirements. WHD also assessed a $4,652 civil money penalty due to the willful nature of the violation.
WHD investigators found that the auto repair shop violated the overtime requirements of the Fair Labor Standards Act (FLSA) when it paid employees off the books, in cash, at their straight-time rates for hours they worked beyond 40 in a workweek. Leschak made these payments to workers, in separate envelopes containing the cash, apart from payment for their first 40 hours of work each workweek. The FLSA requires employers to pay workers one and one-half times their regular rates of pay for overtime hours.
"Employers that pay employees less than they are legally due shortchange their workers, and gain an unfair advantage over competitors that abide by the law," said John DuMont, Wage and Hour Division district director John DuMont, in Pittsburgh, Pennsylvania. "The U.S. Department of Labor will take appropriate steps to enforce the law to ensure that employers pay their employees the wages they have earned. We encourage all employers to reach out to us for guidance so that violations like those in this case can be avoided."
For more tips on staying in compliance with regulations, click here.
