For Immediate Release - June 08, 2010

Norwood Car Dealership Cited Over $285,000 in Wages and Penalties for Not Properly Paying Overtime to Workers

BOSTON - Attorney General Martha Coakley's Office has cited Norwood based Clay Family Dealerships, Inc., for unintentionally failing to pay over 100 employees at the proper rate for overtime work. As a result of the Attorney General's investigation, Clay Family Dealerships was required to pay nearly $280,000 in restitution, as well as a $7,500 penalty to the Commonwealth.

"In these tough economic times, no one should be denied any wages that they have earned," AG Coakley said. "Our office will continue to fight on behalf of all workers in the Commonwealth to make sure that their rights are not violated."

In February, the Attorney General's Fair Labor Division began an investigation into the dealership's payment practices after it received a complaint from a former employee for nonpayment of wages. The company conducted a self-audit of its payroll records and based on a review of those records, investigators discovered that Clay Family Dealerships was not paying the proper overtime rate to employees who worked over 40 hours in a work week. Most employers in the Commonwealth are required to pay employees time-and-a -half for any hours over 40 they work in a week.

An audit of the company's payroll records for 2008 and 2009 revealed that Clay had failed to calculate the overtime properly. As a result, Clay agreed to pay $279,469.67 in restitution to over 167 former and present employees, as well as a $7,500 penalty to the Commonwealth. Throughout the course of this investigation, Clay cooperated fully with the Attorney General's Office. Workers who believe their workplace rights have been violated are strongly urged to call the Attorney General's Fair Labor Hotline at (617) 727-3465. More information about the wage and hour laws is also available in multiple languages at the Attorney General's Workplace Rights website:

This matter was handled by Assistant Attorney General Terri Flanagan Lamarre and investigated by Paul E. Gordon, of Attorney General Coakley's Fair Labor Division.