When an employer fails to include the money earned when calculating overtime pay, this can lead to violations, the cost of back wages, and sometimes penalties.
The U.S. Department of Labor's Wage and Hour Division conducted three investigations of Dorsey Tire Co. The Pooler-based tire and automotive repair shop has multiple locations, including two in South Carolina -- Summerville and North Charleston -- and three in Georgia -- Pooler, Darien, and Dublin. It was found that Dorsey Tire was not including after-hour service calls when calculating overtime, as well as not providing certain commission payments for overtime pay due to their employees.
Following the investigations, the employer was cited with violations of the Fair Labor Standards Act's overtime and recordkeeping requirements. The Wage and Hour Division recovered $79,505 in back wages for 72 workers in both states.
“Employers must calculate and pay proper overtime rates, which can include earned bonuses or commissions, for each hour worked in excess of 40 hours in a work week. Not including all hours of work and commissions earned in overtime calculations denies workers the wages they have legally earned,” said Wage and Hour Division Regional Administrator Juan Coria in Atlanta. “Other employers should use the outcome of these investigations as an opportunity to review the requirements of the FLSA and ensure their pay practices comply with the law.”
These investigations were conducted as part of the Southeast Region’s auto care initiative. In August 2021, three other South Carolina auto centers paid more than $78,000 to 34 workers as a result overtime violations found by agency investigators.
