On June 13, 2023, the U.S. District Court for the Northern District of Georgia issued a significant ruling in response to a lawsuit filed by the U.S. Department of Labor against 811 Autoworks LLC, an auto repair shop in Peachtree City operating as AOK Walker Luxury Autoworks, and its owner, Miles Walker.
The lawsuit alleged retaliation against a former employee who had contacted the Department of Labor after not receiving his final wages. Shockingly, the employer paid the former worker’s $915 owed wages by delivering approximately 91,500 pennies coated in oil, accompanied by an offensive pay stub. Additionally, the company published defamatory statements about the former employee on its website.
The court found that the employer had violated labor laws by wrongly classifying at least 76 security guards as independent contractors and by failing to provide overtime compensation as required by the Fair Labor Standards Act (FLSA). Consequently, the court ordered the company to pay $39,934, which includes back wages and liquidated damages, to nine affected workers.
The judge’s order also permanently prohibits the employer from violating federal minimum wage and overtime provisions and mandates corrective actions, such as removing defamatory content from their website and posting the consent judgment and anti-retaliation fact sheet in the workplace.
Lessons Learned from the Case:
- Employers must accurately classify workers as either employees or independent contractors. Misclassifying employees as contractors can lead to legal consequences, including denial of rightful benefits.
- It underscores the importance of providing eligible employees with proper overtime compensation as mandated by labor laws. Paying straight-time rates for overtime hours is a violation of the FLSA and can result in financial penalties.
- The case emphasizes that retaliation against workers who engage with the Department of Labor is against the law. Employers should not intimidate or harass employees who assert their rights or report violations. Protecting workers’ rights is a priority, and retaliation will not be tolerated.
Learn more about Georgia Labor Laws through our detailed guide.
