An automotive detailer called Interior Magic and two of its officers agreed to a consent judgment, resulting in payment of $292,000 in back wages and liquidated damages and $34,408 in civil money penalties.

The DOL's Wage and Hour Division (WHD) found that the Southern California employer willfully violated the FLSA's overtime, minimum wage and record-keeping rules. Here is a summary of the employer's wrongdoings:

• Deducting the costs of property damage from wages, resulting in workers being paid less than minimum wage
• Paying straight time for all hours worked, including those over 40 per week
• Misclassifying nonexempt employees as exempt
• Failing to keep proper payroll records

The significant aspect of this case was that WHD concluded the violations were willful. The employer could not claim ignorance or inadvertent mistake. Thus, the overall penalty was much higher than it might otherwise have been. The FLSA has been around for more than 75 years, and WHD will usually take the view that employers are aware of the basic rules. “This employer committed willful labor violations, which deprived more than 200 workers of their hard- earned wages,” said Daniel Pasquil, director of the WHD's West Covina District Office. “As demonstrated by this consent judgment, we are vigorously pursuing corrective action in situations where the rights of workers are violated.”

In addition to paying the penalty, the employer must perform the following activities:

• Amend its payroll practices
• Display a notice of WHD's findings, in both English and Spanish
• Hire a third party to train all supervisors on the FLSA

A good time and attendance system is a critical piece of a compliant payroll program. One option is Infinisource's TimeForce system, which can help you fulfill your recordkeeping duties, including overtime tracking. Click here to view a demo or request a quote.

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