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Zeigler Auto Group ordered to pay 85k in back wages

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Posted at 4:24 PM, Mar 31, 2021
and last updated 2021-03-31 16:24:27-04

KALAMAZOO, Mich. — According to the U.S. Department of Labor an investigation revealed Zeigler Auto Group, a company headquartered in Kalamazoo, has failed to pay $85,111 in minimum wages and overtime to 214 of their employees.

“Employees paid on commission basis must earn at least the federal minimum wage per hour of work completed. If they do not, employers must make up the difference,” explained Wage and Hour Division District Director Mary O’Rourke in Grand Rapids, Michigan. “Our investigation put money into the pockets of workers who were underpaid, and levels the playing field for employers who play by the rules. Other employers in this industry should use this investigation as an opportunity to review their own pay practices and avoid similar violations.”

The investigation found the leading auto dealership violated the Fair Labor Standards when they: failed to assure that sales consultants’ commissions covered at least the federal minimum wage for all the hours that they worked during each monthly settlement period; wrongly classified some salaried employees in their business development centers as exempt from overtime requirements, and then failed to pay them overtime despite their duties not qualifying for exemption; and failed to maintain accurate payroll records.

Further investigation revealed that Zeigler Auto Group underpaid 80 sales consultants at the following locations: Zeigler of Kalamazoo, Zeigler Motorsports, Zeigler of Grandville and Zeigler of Plainwell, in Michigan; Zeigler Ford of Elkhart, Indiana; and Hoffman Estates Mercedes Benz, Hoffman Estates Infiniti, Zeigler Nissan of Gurnee, Zeigler of North Riverside and Zeigler of Lincolnwood, all located in Illinois.

More information is available at here.