Carton and Rudnick litigates cases against car dealerships for violating the agreements with their own employees.  The scam goes something like this.  The salesman has a written agreement with a dealership for a percentage of the profits on the front end of the deal.  Selling price over invoice.  This is usually 20%-25%.  The issue is how the cost of the car is calculated and EXTRA costs that are added on top of the oroginal cost of the car.  These might be called dent, bruise or any number of things, most of which are never disclosed to the salesman.  The reason they are not disclosed is because the salesman would get mad it they knew they were paying for damage to lot cars when they know that the dealer has insurance for this or they are fixed at not cost by the dealer or on site help.  The dealer discloses a PACK which is a disclosed add to the cost of the car to represent dealer overhead.  This is disclosed and negotiated.  The other items are not. 

Another non-disclosue is the dealer adding, for no reason, cost to the acquisition of the vehicle, usually the auction price.  As an example the dealer wholesale manager gets a car at Manhein for $5,000, but when the car is sold by the salesman the dealer calculated the commissions  at a cost of $7,500 or so rather than the $5,000 acquisition cost.  This also happens to trade in vehicles, when the dealer increases the cost of the vehicle to reduce the commsions for the salesman and the finance manager.

The car dealers also do this with the aftermarkets such as GAP and etch.   As an example the acquisition cost might be $45 but the commission is based on a product price of $100 or higher.  NO DISCLOSURE AT ALL.

In summary these lawsuits allege dealers are intentionally violating the written pay plans to reduce commissions paid to the employees.

If you think your employer is violating your written pay plan or you dont have a pay plan and the dealer is acting imrpoperly we provide free, confidential consultations.