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Dept. of Labor recovers over $400,000 in damages from Mercedes-Benz

After two employees used family leave and got fired for it, the Department of Labor is suing Mercedes-Benz for not honoring their time off.

A family with two parents and three young children sitting together on the grass after taking family leave with Mercedes-Benz.

The Family and Medical Leave Act (FMLA) offers workplace flexibility for employees who need to take care of themselves or their family. The Mercedes-Benz U.S. International Inc., located in Alabama, found themselves in hot water with the U.S. Department of Labor after it fired two production workers who were using FMLA protected leave. The DOL contends that Mercedes-Benz illegally fired the employees. 

DOL investigation  

Investigators with the Wage and Hour Division found that Mercedes-Benz violated FMLA when it fired the workers who were on protected leave. One employee was taking care of a family member, while the other used FMLA to handle a personal health condition. The employees continued to accumulate non-attendance points under the system employed by the company.

Mercedes-Benz reprimanded the employees and later terminated them for their absences, even though FMLA protects workers who need time off to manage qualified health conditions. In addition, the employees lost out on bonuses due to their absences. Per their investigation, the DOL recovered $438,625 in back wages, unpaid bonuses, equitable remedy and liquidated damages for the two employees, about $219K for each employee. 

Employers, take note 

The DOL found that Mercedes-Benz had several violations under the FMLA. The company did not reinstate workers to the same or equivalent positions after employees took leave. Nor did the company accurately record or maintain the amount of FMLA taken.

Employees were not given notice of their FMLA rights and responsibilities, which is required by law. Employers are also required to inform employees that their leave may be eligible under FMLA. Wage and Hour Division District Director Kenneth Stripling in Birmingham, Alabama said, “The U.S. Department of Labor will defend workers’ rights and pursue all available remedies when those rights are violated.”

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Get more information about FMLA from the DOL.

Dawn Brotherton is a Sr. Staff Writer at The American Genius with an MFA in Creative Writing from the University of Central Oklahoma. She is an experienced business writer with over 10 years of experience in SEO and content creation. Since 2017, she has earned $60K+ in grant writing for a local community center, which assists disadvantaged adults in the area.

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