Rental Car Companies Accused of Violating Fair Labor Standards Act

The rental car industry has recently come under scrutiny and is facing wage and hour lawsuits for allegedly violating various labor laws. Violations include late or missed meal periods, missed rest breaks, unpaid overtime, vacation time, and off-the-clock work.

In the past several years, millions of dollars have been paid out to settle rental car employee lawsuits, many of which were filed in California, for violations of the Fair Labor Standards Act, or FLSA.

Created in 1938, the FLSA introduced a maximum workweek, established a national minimum wage (and guaranteed “time-and-a-half” for overtime in certain jobs), and prohibited most employment of minors. Additionally, under California law, non-exempt (hourly) employees are entitled to 1.5 times their regular rate of pay for all hours worked over eight hours a day or 40 hours per week, and two times their regular rate of pay for hours worked over 12 hours a day. Under the FLSA, employers must prohibit working off the clock, and are required to keep accurate pay records of their employees dating back at least three years.

In a recent unpaid overtime lawsuit against Avis Budget Car Rental LLC, two employees filed a class action lawsuit in New Jersey federal court for failure to pay overtime, failure to keep time records, and other labor law violations. In 2013, Enterprise Rent a Car reached an $8 million settlement of one rental car employee lawsuit after being accused of wrongfully categorizing assistant managers as exempt from overtime pay. And they are not alone; other car companies named in lawsuits include Alamo, Dollar and Thrifty.

FLSA and California law cover non-exempt employees. Employees are encouraged to know and understand their rights and categorization. To be classified as non-exempt, an employee must be at management level or above in title and duties. Managers and assistant managers have been plaintiffs in recent car rental company lawsuits for alleged labor law violations.

Join a Free Rental Car Company Wage & Hour Class Action Lawsuit Investigation

If you worked for a California rental car company as a nonexempt (hourly) employee within the past four years and suffered a wage and hour violation such as late or missed meal periods, missed breaks, off-the-clock-work, unpaid overtime, or unpaid vacation time, you can participate in a free class action lawsuit investigation. Learn more and obtain a free case evaluation at the Rental Car Employee Wage & Hour Class Action Lawsuit Investigation.