$229,475 in Back Wages in Minimum Wage and Overtime Pay Violations By Car Wash and Detailing Service

Thursday, January 17, 2013

Paradise Detail Ltd. in Dallas has agreed to pay 82 current and former detail and car wash employees $229,475 in back wages following an investigation by the U.S. Department of Labor's Wage and Hour Division that found violations of the Fair Labor Standards Act's overtime and minimum wage provisions.

An investigation by the Wage and Hour Division's Dallas District Office found that the company's timekeeping system always rounded time worked in the employer's favor, resulting in paying employees for fewer hours than they had actually worked. Such shortages created minimum wage violations when employees' pay fell below the federal minimum wage of $7.25 per hour. The employer also failed to pay employees overtime at time and one-half their regular rates of pay for hours worked beyond 40 in a workweek.

Paradise Detail, which provides car wash and detailing services to car dealerships, agreed to comply with the FLSA in the future and to pay in full the back wages due.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. In general, hours worked includes all time an employee must be on duty, or on the employer's premises or at any other prescribed place of work, from the beginning of the first principal work activity to the end of the last principal activity of the workday. Additionally, the law requires that accurate records of employees' wages, hours and other conditions of employment be maintained.

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