A former employee of an Ohio car dealership that is a subsidiary of Penske Automotive Group Inc. can’t pursue discrimination claims against Penske, a federal district court in Ohio decided (Divney v. Penske Auto. Grp., Inc., 2016 BL 308206, N.D. Ohio, No. 15-2358, 9/19/16).
The decision reaffirms that a parent company isn’t automatically the “employer” of those working for its subsidiaries.
The parent can’t be sued over employment disputes unless it controls the subsidiary’s labor relations, they share common management and the maintenance of separate corporate entities is a “sham.”
The court Sept. 19 dismissed the age and ...
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