California custom car design firm cited for time and attendance violations

Employees of Interior Magic of California were recently awarded $292,000 resulting from time and attendance violations. The U.S. Department of Labor indicated the Torrance, Calif.-based car detailer was responsible for paying back wages to more than 200 employees for failing to properly compensate them according to federal standards for minimum wage and overtime payments.

The DOL investigated the facility and owners Frank and Tammy Hallberg, finding the company made illegal alterations to employees' paychecks. The workers had pay deducted for property damage, which caused their pay rate to fall below the national standard for minimum wage. In addition, the car detailing company misclassified workers as exempt. As a result, employees were never given overtime wages despite working beyond 40 hours per week.

The Hallbergs were also ordered to pay more than $34,000 in penalties because the pair willfully violated the Fair Labor Standards Act. As a result, the defendants must post payroll compliance notifications in areas of high traffic in both English and Spanish. Furthermore, the court ordered the company to hire experts on the Fair Labor Standards Act to train supervisors on premises.


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