Following an
investigation by the Department of Labor's Wage and Hour Division (WHD), Auto Cricket Corp., a web-based company that provides insurance, financing and selling services through the site AutoCricket.com, has agreed to pay a total of $76,589 in back wages to 414 employees at two locations in Georgia for Fair Labor Standards Act (FLSA) violations.
Employees at the Riviera Beach and Cordele, Georgia, facilities were allegedly not receiving minimum wage for all of their time and attendance or premium pay for overtime work. According to the WHD's investigation, Auto Cricket deducted time for short rest breaks that were considered compensable.
"Rest periods of short duration are common in the workplace, and employers should not deduct this time from employees' pay," said director of the Miami District WHD Office Will Garnitz.
Additionally, the employer was paying employees overtime rates only if they worked more than 80 hours in a two-week period as opposed to
employee attendance exceeding 40 hours each week.
To prevent FLSA violations, employers can install payroll processing systems and timeclocks that calculate employees' earnings based on their time and attendance totals including allowable break times.
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