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Auto dealer pays $166,435 in IC misclassification case

July 12, 2022

Majestic Dealership Services Inc., an automobile dealership company in Houston, has paid $166,435 in back wages to 106 workers after misclassifying them as independent contractors and not providing them with full benefits including overtime, the US Department of Labor announced Monday.

The workers provided detail, valet and car wash services at area dealerships. The department said an investigation found the company paid the workers straight time for all hours worked and failed to pay overtime. The company also failed to maintain accurate records set by the Fair Labor Standards Act, according to the department.

“Misclassification of workers as independent contractors is an all-too-common violation among employers in Houston and around the nation,” Wage and Hour District Director Robin Mallett said.