After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Rental Concepts LLC – doing business as RNR Tire Express in Springdale, Arkansas – has paid $96,511 in back wages to 239 employees to resolve systemic violations of the Fair Labor Standards Act (FLSA) overtime provisions. The employer also violated the Family Medical Leave Act (FMLA) recordkeeping provisions.
WHD investigators found the employer violated FLSA overtime requirements when it failed to include monthly sales commissions and production bonuses earned by employees in addition to their hourly pay when calculating overtime rates for account managers, salesmen, and shop technicians. Additionally, while the company provided medical leave for employees, it failed to provide notice to its employees regarding the Family Medical Leave Act (FMLA), as required.
“This case is a good example of how seemingly small mistakes in payroll can add up quickly and violate the FLSA,” said Wage and Hour Division District Director Hanz Grünauer, in Little Rock. “The U.S. Department of Labor offers many tools and resources to employers to increase compliance. Employers should take advantage of these resources.”