KALAMAZOO, Mich. (WOOD) — An auto dealership will have to pay thousands of dollars in back wages following a U.S. Department of Labor investigation.
Zeigler Auto Group, based out of Kalamazoo, will have to pay $85,111 in back wages to 214 employees. The company violated the Fair Labor Standards Act at 13 different locations in Michigan, Indiana and Illinois.
The U.S. Department of Labor found after an investigation that the auto dealer’s sales consultants’ commissions often failed to meet federal minimum wage requirements. Employees who work on commission must make at least minimum wage, and when they don’t employers need to pay the difference.
The company also marked some salaried employees as exempt from overtime requirements, even though their work did not qualify for an exemption, and did not keep accurate records for payroll.
“Our investigation put money into the pockets of workers who were underpaid, and levels the playing field for employers who play by the rules,” Wage and Hour Division District Director Mary O’Rourke said in a Wednesday statement. “Other employers in this industry should use this investigation as an opportunity to review their own pay practices and avoid similar violations.”
Some Michigan locations found to be in violation of the act include Zeigler of Kalamazoo, Zeigler Motorsports, Zeigler of Grandville and Zeigler of Plainwell.