Car retailer Lithia Motors Inc. violated California labor laws when paying customer service bonuses and reneged on promises made to employees furloughed in the pandemic, a representative action filed in state court alleges.
Karen Koval sued the company July 17, seeking to recover penalties on behalf of herself and other current and former employees.
Customer service representatives were entitled to earn flat bonuses based on reaching service and sales milestones, the lawsuit says. Lithia failed to incorporate the bonuses into the applicable overtime rate, a violation of state labor laws, the complaint alleges.
The suit also addressed violations that allegedly occurred when Lithia furloughed California employees when the Covid-19 pandemic hit in March.
Lithia promised to pay the medical insurance benefits for the month of April for furloughed employees, the suit says. The company failed to honor that promise, instead claiming the employees had been terminated, as had their health insurance, the suit says.
The employees bring their claims under the Private Attorneys General Act, and they also allege missed or untimely meal breaks and failure to pay all wages due upon termination.
Causes of Action: Private Attorneys General Act.
Relief: Civil penalties; pre- and post-judgment interest; attorneys’ fees and costs.
Response: Lithia didn’t immediately respond to Bloomberg Law’s request for comment.
Attorneys: Mayall Hurley PC represents the employees.
The case is Koval v. Lithia Motors Inc., Cal. Super. Ct., No. CV-2020-0006005, 7/17/20.
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