US Department of Labor recovers $1.15M in back pay for 710 workers after Indiana RV manufacturer miscalculates overtime wages

ELKHART, IN – Federal investigators have recovered $1,158,536 in back wages for overtime due to 710 workers at an Elkhart, Indiana, recreational vehicle manufacturer. For more than two years, the employer incorrectly calculated overtime wages for workers paid on a piece-rate basis.

The U.S. Department of Labor’s Wage and Hour Division learned that Alliance RV LLC paid less for each piece in weeks when workers worked more than 40 hours. This resulted in employees receiving less overtime pay than they were entitled to under the Fair Labor Standards Act.

Alliance pays piece-rates to employees on an assembly line to produce recreational travel haulers, towable trailers and 5th wheel campers under the Paradigm, Valor and Avenue brand names.

“No matter how they pay, employers must ensure that they comply with overtime obligations and compute overtime wages correctly,” said Principal Deputy Wage and Hour Administrator Jessica Looman. “These recovered back wages are significant and will go a long way to help these workers. We are glad that Alliance RV has now changed its practices to ensure they pay their workers correctly.”

Employers are responsible for ensuring their pay practices comply with federal law, and that workers are paid no less than the federal minimum wage and for overtime for hours over 40 in a workweek.

The Wage and Hour Division offers employers assistance to help them calculate wage payments properly. For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243).

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint.

Download the agency’s new Timesheet App for android and iOS devices to ensure hours and pay are accurate.