More than 700 workers who are underpaid for overtime at an Indiana mobile home manufacturer will receive $1.1 million in back pay

Alliance RV

Several hundred workers receive a payout from the Elkhart-based company Alliance RV after federal investigators found the manufacturer “did not pay reasonable overtime.”

In a press release, the Labor Department said $1,158,536 in payroll backs from Elkhart-based Allianz will be split among 710 workers.

The assembly line workers “produced five-wheeler recreational trucks, trailers, and RVs under the Paradigm, Valor, and Avenue brand names.”

These workers were paid on a “piece wage” basis. This often means workers are paid based on the number of goods they produce divided by the hours they work, rather than a flat hourly rate.

The Bund Fair Labor Standards Act still requires employers to pay a minimum overtime premium for each piece completed after 40 hours.

According to the personnel consultancy ADP According to the law, employers have two options. You can pay 0.5 percent on top of the full regular piece rate for every hour after 40. Or they pay “1.5 times the unit price for each piece produced overtime. The piecework rate must be what is actually paid during non-overtime hours and must be sufficient to earn at least the hourly minimum wage.”

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An investigation found that the company “paid less for each piece during weeks when workers worked more than 40 hours,” according to DOL.

“Regardless of how they pay, employers need to make sure they honor overtime obligations and calculate overtime wages correctly,” Jessica Looman, deputy payroll and hours administrator, said in the press release. “These refunded wages are significant and will greatly help these workers. We are glad that Alliance RV has now changed their practices to ensure they pay their workers correctly.”

The department offers employers iOS and Android “Time Tracking App” this can help ensure they are charging overtime correctly.

Alliance began production on 110 acres Elkhart plant in 2019. The company did not respond to a request for comment in a timely manner.

Contact Reporter Adam at [email protected] or follow him on Twitter at @arayesIPB.

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