Get Newsletter Submit a Tip

DOL: Dealership Sales Staff Pay Dropped Below Minimum Wage

May 23, 2018 1 Comment

For today’s story, a franchise dealership has been required by the federal government to provide back pay to sales staff for periods when they sold no vehicles, and reportedly weren’t paid.

According to a DOL press release, Rick Hill Imports, a BMW, Mercedes and Porsche franchise dealership out of Kingsport, Tennessee, has been required by the U.S. Department of Labor to provide $58,739 total in back pay, to 20 staff members. The allegation is that following a DOL investigation, it was discovered that the store didn’t pay the sales staff for certain weeks when they didn’t sell any vehicles, dropping their pay below minimum wage. The allegation further indicates the dealership sent staff to vehicle manufacturer certification training without providing compensation for hours worked.

In a statement, Nettie Lewis, DOL Wage and Hour Division District Director in Nashville said in part, “A commission-based pay practice does not alleviate an employer’s responsibility to pay its employees at least the minimum wage rate for all hours worked.”

Dealership commentary on the situation wasn’t available by press time.

About the Author:

Dave Martinson is a broadcast journalist for DrivingSalesNews. He has a background as a TV News Reporter, Anchor and Producer. He has also worked in Digital Marketing and Human Resources. He received his bachelor’s degree in Communication from Brigham Young University – Idaho. He’s married and originally from the state of Washington. He’s a huge football fan and enjoys the outdoors.

  • Bill Phillips says:

    How to breed complacency. Pay people who do nothing and actually cost your dealership sales. Fire them earlier