Business
The continued litigation continues after final week’s sale of The Herb Chambers Corporations and practically all of its dealerships in New England for $1.34 billion.
The Herb Chambers Corporations is combating an ongoing class motion lawsuit, alleging that it didn’t pay lots of of its workers hundreds of {dollars} in time beyond regulation and premium wages.
Attorneys representing the plaintiffs say they’re puzzled as to why the corporate continues to disclaim these staff compensation. The automobile dealership chain recently announced a deal to be acquired by a Georgia dealership group for $1.34 billion.
“I’m perplexed by them digging in,” mentioned Lawyer Robert Richardson, of Richardson & Cumbo, who represents the plaintiff. “The sum of money at stake right here – seemingly seven figures – is a drop in a bucket for what they simply bought all of the dealerships for.”
In Could 2020, Richardson & Cumbo, LLP, a labor and employment legislation agency devoted to defending staff’ rights, filed a category motion lawsuit in Middlesex County Superior Courtroom.
The go well with was introduced on behalf of former finance supervisor Phillip Geller and different finance managers who allege they commonly labored 40 to 60 hours per week, together with Sundays and sure holidays. They declare that proprietor Herb Chambers and The Herb Chambers Corporations didn’t pay them the time beyond regulation or premium wages required by state legal guidelines.
If the courtroom guidelines in favor of the plaintiffs, lots of of different workers may be eligible for misplaced compensation.
In courtroom paperwork, Herb Chambers Corporations says it’s not the employer of the finance managers and is thus not required to pay them the wages owed.
Richardson argues that the current gross sales announcement and different proof from social media, commercials, and the press present that they’re certainly their employers.
As well as, the Superior Courtroom upheld a 2019 case wherein it discovered {that a} elements advisor was an worker of the person dealership and the bigger administration firm, The Herb Chambers Firm. Due to this fact, Richardson argues, the finance supervisor on this case is an worker.
Within the gross sales announcement, Herb Chambers says it owned 33 dealerships, 52 franchises, and three collision facilities, and employed greater than 2,000 individuals.
“The sale drives houses the disingenuous stance that the legal professionals are taking on this case,” Richardson mentioned.
The category motion lawsuits are amongst many filed after the Massachusetts Supreme Judicial Courtroom dominated in Sullivan v. Sleepy’s in 2019 that employers couldn’t deduct time beyond regulation and Sunday premium pay from workers’ commissions. The case ended the observe of utilizing commissions to offset extra pay for hours labored past common shifts or on Sundays.
The aim, Richardson mentioned, is for The Herb Chambers Corporations to pay all finance managers in any respect Chambers’ dealerships in Massachusetts the time beyond regulation and Blue Law wages they’re owed — not simply the named plaintiff.
Richardson argues that denying the cost would appear “extremely inequitable” to the staff who helped improve the corporate’s worth to $1.34 billion. Herb Chambers is an icon locally and routinely offers again, Richardson mentioned.
“He looks like somebody who would do the appropriate factor and we hope he does,” Richardson mentioned.
Attorneys representing Herb Chambers and The Herb Chambers Corporations didn’t instantly reply to a request for remark.
In keeping with courtroom paperwork, the following listening to on this case is scheduled for mid-April.
“We anticipate being profitable going ahead and hopefully get these wages for these workers,” Richardson mentioned.
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