Las Vegas limousine company will pay drivers $240K in back wages

Employers: VLS, LLC doing business as Vegas Limousine Service

Sites: 1400 Commerce Street Las Vegas Nevada 89102

Investigation findings: Investigators from the U.S. Department of Labor's Wage and Hour Division found that VLS paid their drivers solely on a commission basis, which led to minimum wage and overtime violations of the Fair Labor Standards Act. The commissions earned, when divided by the actual hours worked by employees, were less than the federal minimum wage, currently $7.25 per hour. The firm also failed to pay legally-required overtime to drivers when they worked beyond forty hours in a workweek.

Resolution: The firm is complying with the FLSA and will pay $239,555 back wages and to 88 employees.

Quote: "These drivers have been working long hours to support their families. Thanks to this settlement, dozens of workers will receive their rightfully-earned wages," said Gaspar Montanez, director of the department's Wage and Hour Division in Las Vegas. "This case illustrates the critical need for employers to fully understand and comply with the labor laws that apply to their businesses, and to ensure their employees receive the wages they have legally earned. It also illustrates our commitment to enforcing the federal law fairly and equitably. Other workers being paid in this manner should call the Wage and Hour Division."

Information: 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, and are prohibited from retaliating against workers who exercise their rights under the law.

Read the press release about another Las Vegas limousine company found in violation of the FLSA here.

For more information about federal wage laws administered by the Wage and Hour Division, call the agency's toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.