DOL v. Travel Lite Inc. involves a U.S. Department of Labor investigation into overtime pay violations at Travel Lite Inc., an RV manufacturer with facilities in Syracuse and New Paris, Indiana.
The Wage and Hour Division found that the company failed to comply with the Fair Labor Standards Act (FLSA) by misapplying overtime exemptions and improperly paying production workers.
Investigators determined that 25 salaried employees were wrongly classified as exempt, resulting in unpaid overtime despite regularly working more than 40 hours a week.
Additionally, the company compensated production workers with flat daily rates regardless of total hours worked, which also denied them legally required overtime pay. These combined practices affected 168 employees between the two facilities.
As a result of these findings, the company agreed to pay $103,318 in back wages to the affected employees. The case underscores the need for employers to ensure exemptions are applied correctly, maintain proper time records, and pay overtime to eligible employees.
Lessons Learned From the Case:
- Employers must ensure employees truly meet the exemption criteria before classifying them as salaried and exempt from overtime.
- Flat daily rates do not replace overtime. Paying workers a fixed daily amount does not eliminate the obligation to pay overtime for hours over 40 in a week.
- Proper time records and payroll practices protect workers and help employers avoid costly violations.
- Misclassification and improper pay structures can lead to back wage payments and enforcement actions.
If you want to know more about salaried employee rights, read our guide on What are my rights as a salaried employee in Indiana?
