Milton-based McKenzie Buick GMC has settled a dispute over minimum wage, overtime pay and tracking of employees’ hours worked. An investigation by the U.S. Department of Labor’s Wage and Hour Division revealed the dealership wasn’t maintaining accurate records of the hours many of its salespeople worked.
Employees who work on commission—such as car salespeople—must still receive at least the minimum wage for any hours they work. In some cases, McKenzie employees were paid less than minimum wage.
The investigation also revealed that two employees were designated exempt from overtime under the Fair Labor Standards Act () when they should have been classified as nonexempt.
The dealership has paid all back wages and agreed to abide by FLSA requirements, including documenting hours worked of all employees.
- Don't try to recoup overpayments in FLSA suit
- Time records matter! Make sure time clock system lets workers enter OT hours
- How do we pay hourly staff for out-of-town travel?
- Are there any downsides to paying a holiday premium to exempt employees?
- Small amount at stake in employee suit? Know when it's best to consider settling