Fitapelli & Schaffer, LLP is investigating claims against New York car dealerships. After successfully resolving a multi-million dollar unpaid wage case against The Major Automotive Companies, one of New York\u2019s largest dealerships, our firm has found that the car dealership industry is riddled with many of the same violations. These wage violations deprive sales representatives of lawfully earned commissions and wages.<\/p>\n
Many sales representatives for car dealerships often work long hours and are underpaid. For instance, dealerships often fail to provide sales representatives with written commission agreements or fail to calculate their commissions in accordance with the agreed upon terms of the commission agreement. In that regard, dealerships may add additional costs (sometimes referred to as \u201cpacks\u201d) or attempt to inflate the cost of a vehicle in order to pay a sales representative less in commissions. Dealerships will also impermissibly charge back commissions earned by sales representatives for reasons, included, but not limited to repairs, after market items, or extra keys. In these instances, the sales representatives have already earned these commissions and did not agree to allow the dealership to make these deductions from their pay.<\/p>\n
Additionally, despite working well over 40 hours in a workweek, dealerships often pay sales representatives a flat daily or weekly rate that falls below minimum wage and overtime requirements. This is especially problematic where the sales representative earns little or no commissions during that workweek, or if chargebacks bring the sales representative below minimum wage.<\/p>\n