{"id":578,"date":"2014-04-21T16:17:39","date_gmt":"2014-04-21T16:17:39","guid":{"rendered":"https:\/\/www.fslawfirm.com\/blog\/?p=578"},"modified":"2014-04-21T16:17:39","modified_gmt":"2014-04-21T16:17:39","slug":"major-world-lawsuit-plaintiffs-win-summary-judgment","status":"publish","type":"post","link":"https:\/\/www.fslawfirm.com\/blog\/2014\/04\/major-world-lawsuit-plaintiffs-win-summary-judgment\/","title":{"rendered":"Major World Lawsuit- Plaintiffs Win Summary Judgment"},"content":{"rendered":"<p><!--[if gte mso 9]><xml>\n <w:WordDocument>\n  <w:View>Normal<\/w:View>\n  <w:Zoom>0<\/w:Zoom>\n  <w:TrackMoves\/>\n  <w:TrackFormatting\/>\n  <w:DoNotShowComments\/>\n  <w:PunctuationKerning\/>\n  <w:ValidateAgainstSchemas\/>\n  <w:SaveIfXMLInvalid>false<\/w:SaveIfXMLInvalid>\n  <w:IgnoreMixedContent>false<\/w:IgnoreMixedContent>\n  <w:AlwaysShowPlaceholderText>false<\/w:AlwaysShowPlaceholderText>\n  <w:DoNotPromoteQF\/>\n  <w:LidThemeOther>EN-US<\/w:LidThemeOther>\n  <w:LidThemeAsian>X-NONE<\/w:LidThemeAsian>\n  <w:LidThemeComplexScript>X-NONE<\/w:LidThemeComplexScript>\n  <w:Compatibility>\n   <w:BreakWrappedTables\/>\n   <w:SnapToGridInCell\/>\n   <w:WrapTextWithPunct\/>\n   <w:UseAsianBreakRules\/>\n   <w:DontGrowAutofit\/>\n   <w:SplitPgBreakAndParaMark\/>\n   <w:EnableOpenTypeKerning\/>\n   <w:DontFlipMirrorIndents\/>\n   <w:OverrideTableStyleHps\/>\n  <\/w:Compatibility>\n  <m:mathPr>\n   <m:mathFont m:val=\"Cambria Math\"\/>\n   <m:brkBin m:val=\"before\"\/>\n   <m:brkBinSub m:val=\"&#45;-\"\/>\n   <m:smallFrac m:val=\"off\"\/>\n   <m:dispDef\/>\n   <m:lMargin m:val=\"0\"\/>\n   <m:rMargin m:val=\"0\"\/>\n   <m:defJc m:val=\"centerGroup\"\/>\n   <m:wrapIndent m:val=\"1440\"\/>\n   <m:intLim m:val=\"subSup\"\/>\n   <m:naryLim m:val=\"undOvr\"\/>\n  <\/m:mathPr><\/w:WordDocument>\n<\/xml><![endif]--><\/p>\n<p><a href=\"https:\/\/www.fslawfirm.com\/blog\/wp-content\/uploads\/2014\/04\/Order-granting-MSJ-4-15-16.pdf\">Order granting MSJ 4-15-16<\/a><\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\">On April 16, 2014, the District Court granted Plaintiffs\u2019 motion for summary judgment on all their claims.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Plaintiffs, car sales representatives, originally filed the lawsuit on December 30, 2009 against Defendants, The Major Automotive Companies, Inc., Harold Bendell, and Bruce Bendell (collectively, \u201cMajor World\u201d) alleging that Major World failed to pay them the proper minimum wage, overtime pay, commissions, and made unlawful deductions from their earned wages in violation of the Fair Labor Standards Act (\u201cFLSA\u201d) and the New York Labor Law (\u201cNYLL\u201d).<\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\">Plaintiffs alleged that they were paid a shift pay of $20 per day plus commissions.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>However, if they did not make any commissions during the week, they were still only paid $20 per day even though they worked in excess of 40 hours for the week.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Plaintiffs alleged, and the Court agreed, that this pay practice was in violation of the minimum wage and overtime provisions of the NYLL.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Defendants admitted that sales representatives generally worked from 45-55 hours per week and that there were periods where they did not earn commissions and were only paid $20 per day.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Defendants argued that since Plaintiffs earned on average $40,000 to $50,000 per year, they were paid more than minimum wage.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>The Court rejected this argument stating that the \u201cNYLL indisputably requires that employers pay employees minimum wage and overtime on a <span style=\"text-decoration: underline;\">weekly<\/span> basis, regardless of whether those employees earn commission in subsequent weeks.\u201d<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>As such, the Court granted summary judgment in favor of Plaintiffs on their minimum wage and overtime claims.<\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\">Plaintiffs also sought summary judgment on their unpaid commissions claim.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>They alleged that Defendants violated the commission agreement by adding \u201cadditional packs\u201d or \u201cextra costs\u201d to vehicle sales prices, which reduced their commissions. Defendants argued that reductions were to cover \u201cauction expenses,\u201d however, they did not cite to anything in the employee agreements or the collective bargaining agreement pertaining to auction expenses.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Furthermore, Defendants argued that since Plaintiffs did not make any complaints about these reductions, they agreed to this compensation practice.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>The Court stated that \u201ca failure to complain does not render defendants\u2019 conduct permissible in light of the clear contractual language to the contrary.\u201d<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>The Court also rejected Defendants\u2019 argument that <i style=\"mso-bidi-font-style: normal;\">Patcher v. Bernard Hodes Group,<\/i> 10 N.Y.3d 609 (2008) applied to this case.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>The Court stated that the parties\u2019 history of past dealings should be considered \u201conly \u2026 in the absence of a written agreement.\u201d<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Since the language of the contracts were unambiguous, the Court granted summary judgment in favor of Plaintiffs on their unpaid commissions claim.<\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\">The Court also granted summary judgment in favor of Plaintiffs on their unpaid deductions claim.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Plaintiffs alleged that Defendants made deductions from \u201cearned\u201d wages for disciplinary reasons, damage done to vehicles and mechanical problems.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Defendants failed to offer evidence to the contrary and failed to address this issue in its briefing.<\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\">Also, the Court granted summary judgment in favor of Plaintiffs regarding individually liability of Harold and Bruce Bendell.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>It was undisputed that Harold and Bruce \u201cpossessed hiring and firing power, set work schedules, determined salaries, issued checks and drafted and signed employment agreements.\u201d<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Therefore, Harold and Bruce will be jointly and severally liable for any damages awarded.<\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\">Finally, the Court granted summary judgment in favor of Plaintiffs regarding liquidated damages.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>\u201cThe record evidence of willfulness is overwhelming.\u201d<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>In 2006 the New York State Department of Labor (\u201cNYDOL\u201d) investigated Major World and ordered them to pay its employee and ordered them to attend an education seminar regarding compliance with the NYLL (Major World did not attend this seminar).<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Defendants argued that they hired outside counsel in response to the 2006 audit.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>However, Defendants failed to provide evidence that they were advised that the NYDOL\u2019s rulings were erroneous.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Defendants actually stated that they continued to engage in the same policies and practices that the NYDOL found to be unlawful.<\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\">The employment lawyers of Fitapelli &amp; Schaffer, LLP represent employees in various industries with wage and hour claims such as these.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Please contact the employment lawyers at Fitapelli &amp; Schaffer, (212) 300-0375, to schedule a free consultation so that we can discuss your rights under the Fair Labor Standards Act and the New York Labor Law.<\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>\nOrder granting MSJ 4-15-16<br \/>\nOn April 16, 2014, the District Court granted Plaintiffs\u2019 motion for summary judgment on all their claims.\u00a0 Plaintiffs, car sales representatives, originally filed the lawsuit on December 30, 2009 against Defendants, The Major Automotive Companies, Inc., Harold Bendell, and Bruce Bendell (collectively, \u201cMajor World\u201d) alleging that Major World failed to pay them the proper minimum wage, overtime pay, commissions, and made unlawful deductions from their earned wages in violation of the Fair Labor Standards Act &#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[23,1,22,24,41,27,21,34],"tags":[],"class_list":["post-578","post","type-post","status-publish","format-standard","hentry","category-class-action","category-employment-law","category-flsa-2","category-minimum-wage-2","category-new-york-city","category-ny-labor-law","category-overtime-2","category-unpaid-wages-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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