Fixed Ops Journal - October 2022 - F14
FIXED OPS JOURNAL
CODIFY THE RELATIONSHIP
It's essential dealerships establish vendor legitimacy early on
ERIC FREEDMAN
foj@autonews.com
W
hen a Texas dealership group and a Stellantis store
resolved a class action suit alleging underpayment
of wages and overtime to detailers, porters, valets,
shuttle drivers and car washers employed by a now-defunct
company, the settlement refl ected a legal and fi -
nancial dilemma confronting dealerships that rely on outside contractors
for fi xed ops services.
And when a Texas vendor that supplies detailer, valet and car wash
services agreed to pay $166,435 to close a U.S. Labor Department employee
misclassifi cation complaint, that settlement averted potential
claims against the vendor's dealership clients.
In the fi rst case, a settlement reached earlier this year by Sonic Automotive
Inc., several of its Texas dealerships and Gulfgate Dodge-Chrysler-Jeep-Ram
in Houston meant a judge didn't need to decide a thorny
question: Was Rascoa LLC, an independent contractor that had hired
the workers, solely responsible for personnel management and compensation,
as the dealerships argued? Or were Rascoa and the dealerships
joint employers under federal labor law?
FIXED OPS JOURNAL ILLUSTRATION
Th e workers, eight of whom are sharing proceeds of a confi dential settlement,
claimed the dealerships were joint employers with Rascoa,
which is out of business. Th ey received uniforms and badges with individual
store logos, and their suit asserted the stores had joint authority
to hire, fi re and supervise them, set schedules and control pay rates and
work conditions.
Formalize the dealership/vendor relationship
In the second case, resolved in July, Majestic Dealership Services Inc.
had treated workers who were actually employees as independent contractors
and failed to pay them overtime.
PAGE 14 OCTOBER 2022
http://quoruminfotech.com
Fixed Ops Journal - October 2022
Table of Contents for the Digital Edition of Fixed Ops Journal - October 2022
Fixed Ops Journal - October 2022 - Intro
Fixed Ops Journal - October 2022 - F1
Fixed Ops Journal - October 2022 - F2
Fixed Ops Journal - October 2022 - F3
Fixed Ops Journal - October 2022 - F4
Fixed Ops Journal - October 2022 - F5
Fixed Ops Journal - October 2022 - F6
Fixed Ops Journal - October 2022 - F7
Fixed Ops Journal - October 2022 - F8
Fixed Ops Journal - October 2022 - F9
Fixed Ops Journal - October 2022 - F10
Fixed Ops Journal - October 2022 - F11
Fixed Ops Journal - October 2022 - F12
Fixed Ops Journal - October 2022 - F13
Fixed Ops Journal - October 2022 - F14
Fixed Ops Journal - October 2022 - F15
Fixed Ops Journal - October 2022 - F16
Fixed Ops Journal - October 2022 - F17
Fixed Ops Journal - October 2022 - F18
Fixed Ops Journal - October 2022 - F19
Fixed Ops Journal - October 2022 - F20
Fixed Ops Journal - October 2022 - F21
Fixed Ops Journal - October 2022 - F22
Fixed Ops Journal - October 2022 - F23
Fixed Ops Journal - October 2022 - F24
Fixed Ops Journal - October 2022 - F25
Fixed Ops Journal - October 2022 - F26
Fixed Ops Journal - October 2022 - F27
Fixed Ops Journal - October 2022 - F28
Fixed Ops Journal - October 2022 - F29
Fixed Ops Journal - October 2022 - F30
Fixed Ops Journal - October 2022 - F31
Fixed Ops Journal - October 2022 - F32
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