Looman jessica
Principal Deputy Wage and Hour Administrator Jessica Looman commented on the importance of correctly computing overtime wages. | dol.gov

Looman: 'Employers must ensure that they comply with overtime obligations'

More than 700 workers at an Indiana recreational vehicle manufacturer will be receiving a combined $1,158,536 in back pay after federal investigators found their employer miscalculated overtime wages.

The U.S. Department of Labor announced 710 employees of Alliance RV LLC in Elkhart, Ind., would be receiving the overtime compensation owed to them in a Nov. 21 news release.

"No matter how they pay, employers must ensure that they comply with overtime obligations and compute overtime wages correctly," Principal Deputy Wage and Hour Administrator Jessica Looman said in the release. 

According to the release, Alliance RV incorrectly computed overtime pay for employees who were paid on a piece-rate basis for longer than two years.

The Wage and Hour Division of the U.S. Department of Labor discovered the company had paid less than what was owed to the workers when employees surpassed the 40 hour work week. The release noted it caused those employees to receive less overtime pay than what is required by federal law. 

In the release, Looman said the recovered wages "are significant and will go a long way to help these workers." She added the agency was happy the company had implemented changes to make sure employees were paid properly now and in the future.

ORGANIZATIONS IN THIS STORY

More News