Karic v. Major Automotive Companies, Inc.

799 F. Supp. 2d 219, 2011 U.S. Dist. LEXIS 82454, 2011 WL 3235703
CourtDistrict Court, E.D. New York
DecidedJuly 20, 2011
Docket09 CV 5708(ENV)
StatusPublished
Cited by10 cases

This text of 799 F. Supp. 2d 219 (Karic v. Major Automotive Companies, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Karic v. Major Automotive Companies, Inc., 799 F. Supp. 2d 219, 2011 U.S. Dist. LEXIS 82454, 2011 WL 3235703 (E.D.N.Y. 2011).

Opinion

ORDER

CHERYL L. POLLAK, United States Magistrate Judge.

On December 30, 2009, plaintiffs Slobodan Karic, Claribel Garcia, Steven Jones, Goran Stanic, Ljubomir Zivanovie, Daniel Colon, and William Chatman (collectively, “plaintiffs”) commenced this action against The Major Automotive Companies, Inc. 1 (“Major World”) and three individual defendants, Bruce Bendell, Harold Bendell, and Christopher Orsaris (collectively with Major World, “defendants”), alleging violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201 et seq., and the New York Labor Law (“NYLL”), based on defendants’ failure to pay plaintiffs and similarly situated sales representatives proper minimum wages. (Am. Compl. 2 ¶¶ 1, 22-23). Currently before this Court is plaintiffs’ motion for conditional certification pursuant to Section 216(b) of the FLSA, approval of the proposed FLSA Notice to be sent to all potential opt-ins, and expedited discovery of the names and contact information for the potential opt-ins.

FACTUAL BACKGROUND

During the Class Period, which runs from December 30, 2006 to the date of filing of this action, December 30, 2009 (the “Class Period”), plaintiffs were employed as sales representatives at various Major World car dealerships. (Id. ¶ 22; Pis.’ Mem. 3 at 2 (citing Compl. 4 )). According to the Complaint, Major World consists of nine closely affiliated, jointly operated, managed, and controlled new and *222 used car dealerships operating in the New York City metropolitan area. (Compl. ¶ 3; see supra at 221 n. 1). Plaintiffs allege that during the Class Period, each of the individual defendants, Harold and Bruce Bendell and Christopher Orsaris, were responsible for setting the employment and compensation policies affecting Major World’s sales representatives. (Am. Compl. ¶ 11; Pis.’ Mem. at 2).

In addition to the named plaintiffs, plaintiffs allege that there were at least 150 other sales representatives working for Major World during the Class Period. (Am. Compl. ¶ 5). Nine of these other sales representatives 5 have already joined the action as opt-in plaintiffs. Plaintiffs allege that all sales representatives at all Major World dealerships performed the same job duties, were subject to the same working conditions and rules, and were all paid according to the same commission structure. (Id. ¶¶23, 145; Pis.’ Mem. at 10). Plaintiffs allege that during the Class Period, they sold new and used cars at Major World, receiving a flat rate of pay of $20.00 per day, plus commissions based on the cars that they sold, regardless of the number of hours worked. (Am. Compl. ¶¶ 8-9). Plaintiffs allege that they worked approximately six days per week, twelve hours per day. (Pis.’ Mem. at 3). Plaintiffs allege that they were not paid an hourly wage, but instead were paid a shift pay plus commissions on cars sold. (Am. Compl. ¶ 8). Plaintiffs contend that while wages from commissions may be included when calculating minimum wage under the FLSA, the employee must still be paid the statutory minimum for all hours worked in a pay period. (Pis.’ Mem. at 4 (citing Chao v. Vidtape, Inc., 66 Fed.Appx. 261, 264 (2d Cir.2003))).

Plaintiffs claim that if they did not sell any cars during a pay period, they were only paid the $20 per day shift amount. (Am. Compl. ¶ 8; Pis.’ Mem. at 4). Thus, for each pay period that plaintiffs did not sell any cars, they received substantially less than the applicable minimum wage. (Pis.’ Mem. at 4). Plaintiffs further allege that even when they sold one or two cars, the commissions received were not enough to constitute minimum wage when added to the shift pay. (Id. at 4-5). Furthermore, plaintiffs allege that they were never “informed by [defendants of their entitlement to minimum wage for all hours worked under the FLSA.” (Id. at 3).

Plaintiffs assert that “Major World designed and implemented an ongoing scheme whereby it manipulated the gross profits of cars sold, underreported income, self-dealt, and falsified documents and sales records, thereby reducing its sales representatives’ commissions and increasing its own profits.” (Am. Compl. ¶ 10). Defendants would also allegedly charge the sales representatives for any “lateness, failure to properly fill out forms, and other arbitrary and purported infractions.” (Id. ¶ 18). As a result, plaintiffs claim that they sustained “direct and proximate financial harm to their income,” and seek a declaratory judgment, “[ujnpaid minimum wages, overtime pay, spread-of-hours pay, agreed upon wages, unpaid commissions and unlawful deductions of wages, along with liquidated damages and interest,” as well as “pre-judgment interest and post-judgment interest,” “an injunction requiring [defendants to pay all statutorily required wages pursuant to the NYLL,” and all other remedies “this Court shall deem just and proper.” (Id. ¶¶ C, E-G, I).

*223 DISCUSSION

A. Standard for Class Certification Under FLSA 216(b)

Under the FLSA, employers are required to compensate covered employees for all work performed, including overtime, in order to prevent “labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers.” 29 U.S.C. §§ 202(a), 207(a)(1); see also Reich v. N.Y.C. Transit Auth., 45 F.3d 646, 648-49 (2d Cir.1995) (citations omitted). Pursuant to Section 216(b) of the FLSA, an employee may bring an action “ ‘to recover unpaid overtime compensation and liquidated damages from employers who violate the Act’s overtime provisions.’ ” Gjurovich v. Emmanuel’s Marketplace, Inc., 282 F.Supp.2d 101, 103 (S.D.N.Y.2003) (quoting Hoffmann v. Sbarro, Inc., 982 F.Supp. 249, 260 (S.D.N.Y.1997)).

Under the statute, an employee may bring a collective action “for and in behalf of himself ... and other employees similarly situated.” 29 U.S.C. § 216(b). However, unlike a class action brought pursuant to Rule 23 of the Federal Rules of Civil Procedure, a collective action brought under the FLSA may be brought only on behalf of those employees who affirmatively “opt in” by giving consent in writing to become a party to the action. Id.; Gjurovich v. Emmanuel’s Marketplace, Inc., 282 F.Supp.2d at 103-04; see also Iglesias-Mendoza v.

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799 F. Supp. 2d 219, 2011 U.S. Dist. LEXIS 82454, 2011 WL 3235703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karic-v-major-automotive-companies-inc-nyed-2011.