NYC parking garage operator modifies payroll practices in agreement reached with US Department of Labor

NEW YORK – A company that operates 138 parking garages in New York City and surrounding areas has paid $296,836 in back wages for 1,164 employees and amended its payroll practices to align with the federal Fair Labor Standards Act as part of an agreement with the U.S. Department of Labor.

An investigation by the department’s Wage and Hour Division found that Quik Park NYC LLC; RL Holdings 2 LLC; and Quik Park NYC (Fee) LLC, which does business as “Quik Park,” did not comply with the FLSA’s overtime and recordkeeping requirements between Oct. 1, 2014, and July 31, 2016. The division found the company’s practice of rounding hours resulted in employees not receiving correct overtime when they worked more than 40 hours in a workweek. Also, it erroneously programmed its timekeeping system to automatically record employees’ scheduled work hours instead of the actual hours they worked. This resulted in employees not getting paid for hours they worked beyond those scheduled.

“This agreement recovers back wages for thousands of workers in an industry that employs some of the most vulnerable workers. Quik Park’s prompt payment and commitment to current and future compliance ensures that its employees will receive all the wages they are due now and in the future,” said David An, director of the division’s New York City District Office. “Overtime and recordkeeping are not uncommon wage and hour issues. We encourage employers and workers to familiarize themselves with the FLSA’s requirements and to contact us with any questions they may have.”

The division has received the back wages and is in the process of distributing them to the employees. In the agreement, Quik Park neither admits nor denies the findings of the division’s investigation.

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 for hours worked beyond 40 per week. Some states have established minimum wage rates that differ from the federal minimum wage. Where federal and state law have different minimum wage rates, the higher standard applies. Employers also must maintain accurate time and payroll records.

The division is committed to providing employers with the tools they need to understand and comply with the variety of labor laws the division enforces, including resources in a variety of languages. It offers useful resources ranging from an interactive E-laws advisor to a complete library of free, downloadable workplace posters. In addition, the division’s Community Outreach and Resource Planning Specialists conduct ongoing outreach activities to educate stakeholders, including employers, employees, business and labor groups and professional associations, among others, with accessible, easy-to-understand information about their rights and responsibilities.

For more information about the FLSA, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243) or its New York City District Office at 212- 264-8185. Information also is available at http://www.dol.gov/whd.