Car Rental Companies Accused of Unpaid Overtime Violations

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Unpaid overtime for employees of car rental companies is an issue that has led to class action lawsuits over wage and hour violations. California workers, in particular, have rights that could lead to additional wage and hour class action lawsuits.

Enterprise Rent-A-Car recently agreed to pay a $7.75 million class action lawsuit settlement to employees nationwide. A former Enterprise employee, plaintiff Nikolas Hickton, alleged that the rental car company violated several Fair Labor Standards Act (FLSA) wage and hour regulations, including the denial of overtime pay.

Labor laws in California and some other states can be even stricter than those under federal law regarding wage and hour issues, including overtime. Rental companies named in various wage and hour lawsuits in California and elsewhere include:

• Avis
• Alamo
• Budget
• Enterprise Rent-A-Car
• Fox Rent-A-Car
• Midway Car Rental
• National Car Rental
• Payless Car Rental
• Thrifty Car Rental

FLSA Wage and Hour Standards

The FLSA was established to protect the rights  of workers and to ensure they are fairly  compensated for time worked. Under FLSA, a worker cannot be paid less than the federal minimum wage, which is currently $7.25 per hour. However, in the case of most California employers, they must pay their employees the state minimum wage of $8 an hour, which will rise to $9 an hour on July 1.

These rules do not only apply to hourly employees. FLSA rules state that if an employee is paid a given salary, the yearly salary when divided by hours work must, at a minimum, equal minimum wage for hours worked. Similarly, commissioned employees can calculate if they are being paid minimum wage by taking their total pay divided by hours worked.

The FLSA also requires that an employee be paid 1.5 times their regular pay for each hour worked over the 40 hour work week. California state law mandates that an employee be paid double their hourly wage if they work 12 hours or more in a shift during a 40 hour work week.

One major difference in FLSA regulations and California Labor Laws regards the payment of tipped wages. According to the State of California Department of Industrial Relations: “Unlike under federal regulations, in California an employer cannot use an employee’s tips as a credit towards its obligation to pay the minimum wage. California law requires that employees receive the minimum wage plus any tips left for them by patrons of the employer’s business.”

Join a Free Unpaid Overtime Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone. Learn more and obtain a free evaluation of your case to see if you’re eligible for back pay and other compensation at the Unpaid Overtime Lawsuit: Wage & Hour, Overtime Pay Class Action Lawsuit Investigation.