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June 12, 2009
Auto Dealer Accused of Failure to Pay OT to Trainees

America’s Car Mart has agreed to pay $117,023 in overtime back wages to 103 current and former management trainees in 8 states after the Department of Labor accused the company of violating the Fair Labor Standards Act (FLSA).

The department alleged the company violated the FLSA by failing to pay its employees the overtime compensation they were legally entitled to receive.

“This company failed to follow federal wage and hour regulations,” said Cynthia Watson, regional administrator for the department’s Wage and Hour Division in the Southwest. “In this case, non-exempt trainees were not compensated at time and one-half their regular rate of pay for overtime hours while in training.”

Employees worked in the states of Alabama, Arkansas, Indiana, Kentucky, Missouri, Tennessee, Oklahoma, and Texas.

The department says the company cooperated with the investigation.

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