Karic v. Major Automotive Companies, Inc.
992 F. Supp. 2d 196 (E.D.N.Y. 2014)
U.S. District Court, Eastern District of New York · April 16, 2014
What the court decided
Car salespeople paid $20 a day plus commission were owed minimum wage and overtime measured week by week; annual earnings were "a red herring." Chargebacks for discipline, vehicle damage and mechanical problems violated section 193, which places "the risk of loss . . . on the employer." Not complaining did not authorize deductions the written plan never allowed. Officers who hired, fired, set pay and signed the agreements were personally liable as employers.
Who won
A win for the salespeople; the court granted them partial summary judgment on the remaining Labor Law issues.
Why it matters for salespeople
The most useful single decision for commissioned retail and dealership salespeople: the weekly minimum-wage rule, the chargeback rule, and personal liability for the owners, all in one place.
Key passage: 992 F. Supp. 2d 196 at 198-204.
Read the decision (PDF) Marked with official reporter pages for citation.
Source of the text: govinfo.gov (the court's filed opinion) — https://www.govinfo.gov/app/details/USCOURTS-nyed-1_09-cv-05708. This page summarizes the decision in plain language; the court’s own words are in the PDF above.