Last week, I published an article detailing a U.S. Department of Labor investigation into Alliance RV. In summary, the DOL found that over two years Alliance failed to pay the proper overtime wages for piece-rate employees. Accounted for was $1.2 million.
At the time of posting, Alliance RV had not yet commented to any media outlets on the situation. Earlier this week, however, Co-Founder and President of Alliance RV, Coley Brady, reached out to me. He wanted to offer an official company comment on the investigation. To accurately represent Alliance’s side of the story, this article will detail those words.
Alliance RV’s official company comment
Coley Brady’s comment read as follows:
Our employees are our greatest resource, and while establishing our compensation model during inception, we undertook an analysis to ensure that the complex piece rate calculation utilized to pay our employees was compliant with the Fair Labor Standards Act.
Unfortunately, despite our analysis, there was an unintentional misapplication of a certain aspect of the overtime calculation. Upon discovering the error, we immediately reevaluated our piece-rate model to ensure it adhered to all aspects of the Fair Labor Standards Act and regulations. The new model was implemented as soon as it was further vetted and deemed compliant. The Company then began the process to determine what was owed to our employees based upon the compliant compensation model.
After the compensation model had been corrected, while we were making the calculations of amounts owed, the Department of Labor (DOL) contacted us regarding our overtime calculations. The Company cooperated with the DOL fully, and advised that it was already in the process of addressing the issue. Upon finishing our assessment of any amounts owed, we shared the information with the DOL and worked with the agency to pay the affected employees.
This was an unfortunate and unintentional error that was rectified early in 2022 and we consider it a closed matter.