Genter’s Detailing in Frisco has agreed to pay $22,345 to its employees following a U.S. Department of Labor Wage and Hour Division investigation.
The investigation revealed that the car wash and auto detailer regularly reduced the wages of 53 current and former employees by $200 to $400 for costs allegedly associated with damage to vehicles under their care. Those deductions resulted in the employees’ pay falling below $7.25 per hour, the federal minimum wage, in violation of the Fair Labor Standards Act ().
The company also failed to maintain pay records as required by the FLSA. Genter’s Detailing has fully repaid the back wages and agreed to comply with the FLSA in the future.
Note: The FLSA places strict limits on deductions that can legally be taken out of employees’ paychecks. If deductions cause an employee’s wages to fall below the minimum wage, that’s almost certain to trigger enforcement action. Before making any unusual payroll deductions, consult your attorney for guidance on the FLSA and Texas law.