Nissan Dealership Sued Over Minimum Wage For Commission Sales

A Nissan Dealership based in Bayside, N.Y. is likely to face a class action lawsuit over minimum wage for commission sales.

Plaintiffs Razvan H. and Luis F. are two former automobile salesmen for Star Nissan who have filed suit against the company for failure to pay what amounts to minimum wage for commission sales under the Federal Fair Labor Standards Act (FLSA).

According to autonews.com, the two plaintiffs were paid by Star Nissan based on commission plus a flat $100 weekly salary. The weekly salary was non-negotiable and had no relationship to the number of hours worked in each 7-day week, even if those hours were excessive.

As of 2009, a federal minimum wage of $7.25 was established under FLSA. At the time of Razvan’s and Luis’ employment, New York State’s minimum wage was in the range of $7.15 to $9.00.

Employers are beholden to the higher minimum wage when there is a difference between state and federal standards.

While certain commissioned salespeople can fall under exemption for overtime pay – pay at one and one-half times their usual rate of pay for every hour over 40 in a seven day period – they may still qualify for minimum wage protections that ensure they are compensates for all hours worked with at least the base minimum wage.

In this proposed class action lawsuit over minimum wage for commission sales, the plaintiffs claim that for several weeks when commissions were low, the combined take-home pay came in well below the applicable standard.

Star Nissan Fights Against Class Action Status

Star Nissan fought against turning this litigation by the two aggrieved former salesmen into a class action lawsuit over minimum wage for commission sales. The company denied any general wrongdoing and asked that each case be considered individually.

The dealership felt that sales incentive programs paid through Nissan Motor Corporation were not taken into consideration in determining a shortfall against minimum wage standards.

Ruling Determines Nature of Lawsuit over Minimum Wage for Commission Sales

In April 2017, U.S. Magistrate Judge Robert Levy, presiding in Brooklyn, granted conditional certification for the proposed plaintiff class ─ technically, a plaintiff “collective” under the FLSA. Judge Lefy’s decision has opened the door for salespeople that have worked at Star Nissan from July 12, 2013 forward to join the wage and hour class action litigation against the company.

Because of this ruling, up to 20 people are on notice of their rights to join this action. To date, six have joined the class action lawsuit, but a determination by the court has yet to be made as to whether said potential plaintiffs are ‘similarly situated’.

According to autonews.com, Judge Levy reserves the right to reverse his ruling which turned this suit into a class action if it is discovered that the eight total plaintiffs have little in common with regard to their complaints against the Star Nissan.

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