Wage and Hour Division (WHD)

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HOUSTON -- Houston-based Group 1 Automotive Inc. has agreed to pay $388,766 in back wages to 1,478 current and former sales representatives after a U.S. Department of Labor (DOL) investigation found these employees had not been paid the minimum wage for all hours worked as required under the Fair Labor Standards Act (FLSA). Civil-money penalties totaling $34,320 have also been assessed.

“The U.S. Department of Labor is committed to enforcing the law to ensure that employees receive the wages they have earned,” said Cynthia Watson, Wage and Hour Southwestern regional administrator. “We are pleased in this case that almost $389,000 will be recovered in back wages for these workers.”

An investigation by the DOL’s Wage and Hour Division determined that sales representatives receiving straight commission were not paid at least the minimum wage for all hours worked. Additionally, the company failed to maintain accurate time and payroll records.

Group 1 Automotive Inc., which owns and operates 96 car dealerships in the United States, has agreed to pay all employees the back wages due and also agreed to future compliance with the FLSA.

The FLSA requires employees to be paid the minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked more than 40 in a single workweek, unless otherwise exempt. Employers must also maintain adequate and accurate time and payroll records.

The Wage and Hour Division concluded 34,858 compliance actions in fiscal year 2005 and recovered more than $166 million in back wages for more than 241,000 employees. Back-wage collections last year represent a 26 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 11 percent since fiscal year 2001.

For more information about federal overtime laws, call the DOL’s toll-free help line at 1-866-4USWAGE (1-866-487-9243) or contact the Wage and Hour Houston district office at (713) 339-5500. Information is also available on the Internet at www.wagehour.dol.gov.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.