Tom Johnson RV Agrees to Pay Back Wages

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March 26, 2010 by   4 Comments

Tom Johnson Camping Center has agreed to pay $144,984 in back wages to its employees following an investigation by the U.S. Department of Labor, according to WBTV-TV, Charlotte, N.C.

The company sells and provides maintenance of recreational vehicles, trailers and campers with locations in Concord and Marion, N.C.

Investigators with the Labor Department said the company violated provisions of the Fair Labor Standards Act and that back payments are due to 54 workers.

The Labor Department found that sales employees did not receive payment for the federal minimum wage for all the hours they worked. Investigators said employees who worked on commission did not receive pay in the weeks they did not make any sales, the Labor Department said in a written statement issued Thursday.

“This outcome should serve as a reminder to other employers to make sure they are familiar with the requirements of the law and careful about compliance so that workers are always properly paid for all hours worked,” said Richard Blaylock, district director of the Wage and Hour Division in Raleigh, N.C.

Under the FLSA, covered employees should be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week.

Although exempt from overtime provisions, the FLSA requires that commission sales workers, other than those engaged in outside sales, be paid at least the federal minimum wage for all hours worked in a work week.

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4 Responses to “Tom Johnson RV Agrees to Pay Back Wages”

  1. RV Guy on March 26th, 2010 11:50 am

    I think this is a load of crap. The government is putting its nose in where it doesn’t belong. If they are good then they shouldn’t have had many, if any at all, weeks where they don’t sell anything. When the commisions are factored in, I can bet that they did a whole lot better than minimum wage.

  2. Ben on March 26th, 2010 2:40 pm

    Its a wonder that a big dealership like this didn’t want to take care of their employees better. Why cheat your employees? Aren’t they entitled to make minimun wage like everybody else? I know an RV salesman who works at a different dealership and he says he starves for 6 months and makes a solid living during the good season, But no income in the off season, how do you tell your children that santa won’t come this year until june? Maybe the RV Guy better start selling RV’s and show the other 54 people who couldn’t do it, the right way, how to make money 12 months a year.

  3. Marty Wheelen on March 26th, 2010 3:18 pm

    We have been living by these rules since 1988 when we had the same wage and hour people audit our payroll records!! You also can’t hire sales people on commission only, they must be payed weekly at least minimum wage for the hours worked! The settlement for commissions can be done monthly but not carried over to the next month. Sales people must be payed monthly only.

  4. BS on March 26th, 2010 5:31 pm

    This is BS. It is not about screwing the little guy salesperson. If a sales person is hired as commission only then the employer should be allowed to pay commission only. I have never heard of paying salespeople minimum wage PLUS their commissions. We would be better off just doing a flat salary for the salesman. This is just another crappy loophole for small businesses to get screwed.

    In my opinion (this is a generalization) salespeople are poor money managers. They should try saving during the high season so they have cash in the low season…then kids wouldn’t have to go without presents and kids would have a good example from their financially fiscal parents.