The U.S. Department of Labor’s Wage and Hour Division and Thor Motor Coach have reached an agreement to resolve overtime and minimum wage violations.
This story by Jordan Fouts originally appeared in The Elkhart Truth.
The violations occurred at nine production plants in Elkhart and Wakarusa, according to the DoL’s announcement. Under the agreement, Thor has paid 386 workers a total of $59,514, representing $29,757 in back wages and an equal amount in damages.
Investigators with the Wage and Hour Division found violations of the Fair Labor Standards Act occurred when recruitment bonuses paid to employees were not included in overtime rate calculations, resulting in workers being paid less than they were legally owed, according to the announcement. The hourly rate earned by some piece rate workers fell below the minimum wage, and the company paid time-and-half on those same sub-minimum wage rates when calculating overtime for piece-workers.
The company also failed to keep accurate records of hours worked, the DoL says.
The Department of Labor also announced this month an agreement to resolve overtime violations reached with a large Midwest health care management company that has a facility in Elkhart.
Ide Management Group, which operates the facilities as IMG, has agreed to pay 594 workers $165,379 in back wages and damages. That includes $1,813 paid to 15 employees at Woodland Manor in Elkhart.
The Wage and Hour Division found the Indianapolis-based company failed to include non-discretionary bonuses and shift-differentials paid to employees in overtime rate calculations, a violation of the Fair Labor Standards Act that resulted in workers being paid less than they were legally owed. The omission also led to violations of the FLSA’s record-keeping provisions.
In addition to paying the back wages and damages, Ide Management Group has employed a new payroll service and is using new software to ensure correct computation of pay rates in the future, according to the announcement.