EMPLOYMENT LITIGATION

CASE: STAR NISSAN AUTO GROUP

ISSUES: Minimum Wage, Overtime Compensation, Unpaid Commissions, Unlawful Deductions

Summary:

On Monday, September 26, 2016 Fitapelli & Schaffer, LLP filed a class and collective action lawsuit against Star Nissan Inc (“Star Autogroup”). The Star Autogroup is one of the largest privately owned car dealerships in the New York metropolitan area and is a franchise dealer for Chrysler, Jeep, Dodge, Fiat, Toyota, Scion, Hyundai, Nissan and Subaru. Star Nissan Inc. The complaint alleges that sales representatives were not paid proper minimum wages and overtime pay, and that the Star Autogroup failed to calculate commissions in accordance with sales representatives’ commission agreement.

In many instances a sales representative did not earn any commissions in a given pay period or did not earn enough commissions to reach the minimum wage and overtime requirements of the Fair Labor Standards Act (“FLSA”) and New York Labor Law (“NYLL”). Regardless of how many hours sales representatives worked or the amount of commissions they earned, sales representatives were not paid additional compensation.

Additionally, even though sales representatives were promised commissions based off of a percentage of the “back end” and “front end” gross for new and used vehicles, Star Autogroup often failed to pay sales representatives in accordance with the agreed upon terms of their commission agreement. Specifically commissions were often reduced by “packs” added to the “front end” of new and used vehicles. Star Autogroup would also reduce the commissionable gross when a customer traded-in a vehicle for the purchase of another vehicle of a different make and model. Moreover, Star Autogroup often gave sales representatives flat commissions on certain deals regardless of the profit margin on the “front” or “back end.” Such deals included, but were not limited to, deals where the vehicle was previously listed on Craig’s List, leased vehicles, and deals where the buyers require specially financed deals as the result of bad credit. As a result of these practices, sales representatives’ commissions are impermissibly reduced.

Additionally, Star Autogroup also has a policy where it charged back its sales representatives’ paid commissions for reasons like repairs. These often unexplained charge backs were made weeks or months after the sales representative closed a deal, received the commission, and were given a commission breakdown.

Fitapelli & Schaffer, LLP believes Star Autogroup unfairly implemented these practices across all of its locations, affecting hundreds of sales representatives. Current and former sales representative for all of Star Autogroup dealerships should contact us to see if they are eligible to join the case. Please contact one of our employment lawyers by calling (212) 300-0375 for a free phone consultation or visit our website at fslawfirm.com. You can also view the complaint by clicking here.

RECORD SETTING AWARDS AND SETTLEMENTS

FOR OUR CLIENTS


$19,100,000

$19.1 Million for Tipped Restaurant Workers. (pending court approval)

Workers such as servers, bussers, runners bartenders, barbacks and other tipped workers at a large national casual dining chain alleged they were owed wages. Their claims included but were not limited to: unpaid overtime, spread-of hours, misappropriated tips, uniform-related expenses and unlawful deductions.

$15,900,000

$15.9 Million for Personal Bankers.

The firm was able to recover overtime compensation for personal bankers and others similarly situated at a national bank that operates hundreds of branches throughout the United States. Employees in affected positions claimed they were required to work more than 40 hours a week in order to meet sales quotas but were not compensated overtime for their pay.

$14,500,000

$14.5 Million for Spam Text Victims

Fitapelli & Schaffer was able to recover damages for recipients of unwanted promotional text messages from a popular young adult clothing retailer. The clothing company allegedly violated the Telephone Consumer Protection Act by sending text messages to recipients’ cellular phones without their prior express written consent.

$7,000,000

$7.0 Million for Bank Loan Officers

The firm was able to recover overtime compensation for loan officers at a national bank that operates more than hundreds of branches nationwide. Employees in affected positions claimed they were required to work more than 40 hours a week in order to meet sales goals but were not compensated overtime for their pay.

$5,900,000

$5.9 Million for Commissioned Car Salesmen.

One of the largest auto dealerships in the NYC Metropolitan Area agreed to pay owed wages to its car salesmen. The company was accused of failing to pay salesmen the proper minimum wage, overtime pay, commissions, and made unlawful deductions from their earned wages in violation of federal labor laws.

$4,300,000

$4.3 Million for Personal Bankers

Even though personal bankers at this nationwide bank were classified as exempt from receiving overtime pay, the company routinely required them to work in excess of 40 hours per week. There are federal laws that help protect workers from misclassification and in this situation; Fitapelli & Schaffer was able to recover unpaid overtime for personal bankers throughout the United States.

$4,300,000

$4.3 Million for Entertainers at Gentleman’s Clubs

F&S represented entertainers at a popular gentleman’s club in New York City that claimed the club failed to pay them the proper wages. The entertainers were able to recover owed wages that included unpaid minimum wages, overtime pay, spread-of-hours pay, unlawfully retained tips, unlawful deductions, and uniform-related expenses.

$3,600,000

$3.6 Million for Tipped Employees at Upscale Restaurant

Tipped workers alleged that a Mexican Michelin rated restaurant with 17 locations denied them overtime pay, minimum wages, and call-in pay. Our firm was able to recover wages for these tipped employees that included servers, bussers, bartenders, food runners and barbacks.

$3,400,000

$3.4 Million for Assistant Managers at Bank

Fitapelli & Schaffer successfully recovered unpaid overtime for assistant managers on a salary at a bank with locations nationwide. The salaried workers argued that they were wrongfully classified as exempt from receiving overtime when working over 40 hours per week.

$3,000,000

$3.0 Million for Bank Loan Officers

The fast food chain allegedly misclassified its assistant managers as salaried workers and considered them exempt from receiving overtime pay when working over 40 hours per week. Fitapelli & Schaffer was able to recover overtime compensation for all of the popular fast food chains’ assistant managers nationwide, with the exception of California.

$2,836,000

$2.9 Million for Tipped Restaurant Employees.

Fitapelli & Schaffer was able to recover unpaid minimum wages, overtime, spread-of hours, and unlawful deductions for tipped restaurant workers at a popular dining chain. Affected workers included servers, bussers, runners bartenders, barbacks and other tipped workers.

$2,250,000

$2.25 Million for Tipped Workers at Chain Sports Bar

proper minimum wage and overtime. Fitapelli & Schaffer helped the workers recover owed wages to the following positions: servers, bussers, bartenders, and other tipped workers under federal and state labor laws.

$2,000,000

$2.0 Million for Bank Loan Officers

Fitapelli & Schaffer was able to successfully recover unpaid overtime for loan officers at a nationwide bank that operates over one thousand locations across the United States. Loan officers for the company alleged that even though they were hourly employees and consistently worked over 40 hours per week they were working off the clock and not getting overtime pay.

$1,950,000

$1.95 Million for Health Care Workers

A New York based health insurance provider allegedly had its health care workers working over 40 hours per week but required they submit weekly timesheets that only showed they worked 37.5 hours. Fitapelli & Schaffer was able to successfully recover compensation for unpaid wages, overtime and spread of hours pay.

CONTACT

FITAPELLI & SCHAFFER LLP


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