Best Aire Compressor Services Inc., a Grand Rapids-based air compressor sales company to pay $13K in unpaid overtime wages, damages to 13 employees
Employees misclassified as exempt from overtime
Type of Action: Fair Labor Standards Act consent judgment
Names of Defendants: Best Aire Compressor Services Inc.
Thomas Russell
Allegations: An investigation by the U.S. Department of Labor’s Wage and Hour Division found that Best Aire Compressor Services Inc., which does business as Best Aire CSI, misclassified salaried parts managers and some office clerical staff as exempt from overtime. The Grand Rapids, Michigan-based air compressor sales company and its owner, Thomas Russell, failed to pay these employees and, on some occasions, hourly service technicians overtime for hours worked beyond 40 in a work week in violation of the FLSA. The employer also failed to maintain accurate pay records.
Resolution: Under terms of a consent judgment, the company has agreed to pay a total of $13,603, including $6,801 in back wages and an additional $6,801 in liquidated damages to 13 former and current employees. Five of the employees work in the Grand Rapids office, six in Millbury, Ohio, and two in Greenfield, Indiana.
The company is also required to provide information on the FLSA and specific Wage and Hour Division fact sheets on rules governing overtime to employees.
Quote: “Simply paying an employee a salary does not necessarily mean the employee is not entitled to overtime,” said Mary O’Rourke, district director for the Wage and Hour Division in Grand Rapids. “When these employees were shorted their overtime pay, it not only hurt them and their families, it also created a competitive disadvantage for this employer’s competitors. We remain committed to ensuring that workers take home every penny they have earned rightfully, and to leveling the playing field for employers who play by the rules.”
Information: The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. For an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the department's regulations.
The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records. The FLSA provides that employers who violate the law are liable to employees for their back wages and an equal amount in liquidated damages.
Court: U.S. District Court for the District, Western District of Michigan, Southern Division
Docket Number: 1:15-cv-00842-RJJ-RSK, Perez v. Best Aire Compressor Services Inc., and Thomas Russell
WHD News Brief:
07/21/2016
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Welcome to Best Aire Compressor Service Inc!
We have Midwest Coverage with branches
in Ohio, Indiana and Michigan to help better serve all your compressed
air and blower needs. Allow me to
introduce you to some of Best Aire's products and services we can
provide.
Since 1982, Best Aire CSI has been servicing all makes and models of
centrifugal, rotary screw and reciprocating air and gas compressors. Our
dedication to providing the finest parts and services at the most
competitive
prices has made us a leader in compressor technology.
We are well equipped to provide a variety of
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in-house, depending on how extensive your needs may be. We can handle simplest
task from preventative maintenance to the most complex task of complete machine
overhaul. Other services available to you are a 24-hour emergency service, a
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audits and vibration analysis.
We specialize in complete design and engineering
services for compressor, dryer, cooling tower and chiller PLC Controls - as well
as service on any other manufacturers controls.
Our stall of fully trained technicians, sales
and support staff are ready to help you solve your air system problems with
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Best Aire CSI is Your Single Source for quality, value and service.
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