MANCHESTER — A motorcycle dealer with locations in Pembroke and Merrimack has paid more than $40,000 in back wages and damages to employees, after federal officials say the company failed to pay employees overtime wages.
The U.S. Department of Labor’s Wage and Hour Division (WHD) announced Wednesday that The Collectable Trader LLC — doing business as National Powersports Distributors in Pembroke and Merrimack — has paid $22,165 in back wages and an additional $22,000 in fines to 59 current and former employees to resolve violations of the Fair Labor Standards Act (FLSA).
Federal investigators determined company violated the FLSA by failing to pay overtime for any hours employees worked over and above the typical 40 hour workweek.
“Specifically, the employer’s practice of failing to count short breaks and meal periods as work time resulted in overtime violations when that unpaid time caused employees’ total hours to exceed 40 in a week,” federal officials said in a statement. “The general sales manager’s practice of altering the payroll records to reflect fewer hours than certain employees at the Pembroke location had actually worked led to additional violations.”
Barry Eisenberg, CEO of National Powersports Distributors, said the issue was an out-of-date overtime policy that has since been updated.
“We discovered the out-of-date policy during a routine labor and wage audit,” said Eisenberg. “The problem has been corrected, and the wages owed to employees have been paid.”
“Employees must be paid for all hours they work, including short rest periods,” said Wage and Hour Division Northern New England District Director Daniel Cronin in Manchester. “Management cannot permit employees to work without compensation. We encourage employers to contact our Manchester office to better understand the law and to avoid violations. Trained Wage and Hour Division professionals are available to speak with callers confidentially to answer their questions.”
According to Cronin, his department offers several resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.