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  4.  » Misclassified body shop employees due $19,000 in back pay

Misclassified body shop employees due $19,000 in back pay

| Oct 5, 2012 | Wage And Hour Laws |

When most employees in Kansas work over forty hours per week, the employees are entitled to extra compensation if they are non-exempt employees. The terms of how, why and the amount of compensation an employee may receive for overtime is determined by company standards and prevailing state and federal laws. When an employee does not receive just compensation for overtime, the employee may have a wage and hour claim for what was not paid.

Wage and hour violations can occur in almost any employment scenario, in both large and small workplaces in Kansas. The U.S. Department of Labor recently investigated a body shop, which is a smaller automotive company, and determined the employees were due back pay for overtime hours worked.

During the investigation, the DOL determined that the employer failed to properly classify some of its employees. Employee classification can play an essential role in the determination of eligibility for overtime compensation.

When an employee is classified as an exempt employee, the employee may not be eligible for overtime compensation. Employees who are classified as non-exempt must be paid for the overtime hours worked. If an employee was misclassified as an exempt employee but is actually a non-exempt employee, the employee may still be entitled to overtime compensation.

The misclassified body shop employees were paid their normal pay for overtime instead of being paid one and one half of their normal pay. As a result of the misclassification, the DOL determined the employer was required to pay the affected employees back pay that amounted to more than $19,000. The employer has stated its intent to comply with DOL employee classification standards in the future.

Source: WRAL, “Jacksonville business to repay $19,000 in back wages,” Oct. 1, 2012

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