News

Calif. Penske Workers to Share $2.1M

Order Reprints

March 6, 2018—An estimated 1,750 employees of Penske Automotive Group Inc. dealerships in California will share $2.1 million from a court-approved settlement of a wage-and-hour class-action lawsuit.

Judge Brian Walsh of Santa Clara County Superior Court preliminarily approved a settlement of the suit filed by Davis Zirpolo, a former salesman at Audi Stevens Creek in San Jose, against the Bloomfield Hills-based auto retailer.

The beneficiaries of the settlement will receive an average of $1,205 each. They worked in vehicle sales, finance and insurance, and parts departments, according to the Feb. 23 decision.

Walsh scheduled a July 6 hearing on final approval of the settlement, which totals $3.2 million.

The case, filed on July 24, 2017, on behalf of the dealership group's commissioned employees, accused the company of not paying minimum and overtime wages and not providing the off-duty meal and rest periods that California law requires.

It also alleged that the company wrongfully required the employees to report to their jobs without getting at least half of their scheduled day's work and that it failed to reimburse them for required expenses. In addition, there were claims of failing to provide accurate itemized wage statements and unfair competition.

Walsh cited the number of employees affected in finding that a class-action settlement is appropriate because "it would be inefficient to hear and decide the same issues separately and repeatedly" for each individual and would be "cost-prohibitive" for each employee to file a separate lawsuit.

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