DOL tells tire company to give payroll practices a tune-up

DJR Holding Corp., a tire company that has locations across Iowa, including Ankeny, Creston, Boone, Knoxville and Muscatine, violated the Fair Labor Standards Act (FLSA) overtime provisions, according to The Associated Press. A recent investigation revealed the employer paid its mechanics on a salary basis, but only when it was convenient for the company.

If employees worked more than 40 hours a week, the company paid them a standard salary and held that they were ineligible for overtime pay because of that arrangement. (Some companies confuse salaried positions as being exempt from overtime laws, which is not true). However, if those workers put in less than 40 hours, they were docked pay for that amount of employee attendance.

The FLSA establishes that if workers are truly paid on a salary basis, their compensation cannot be docked in this way. If an employee performs any work on a scheduled day, they should receive full wages. More importantly, employers can't make deductions if they feel work was not performed to their expectations. A salary is a salary.

That being said, an employee who completely misses a day of work is not guaranteed wages if that time is not considered sick leave or paid time off.


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