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Six-Figure Settlement for a Minimum Wage Violation

Settlement for Minimum Wage Violation

Tittle & Perlmuter obtains a six-figure collective-action settlement for a minimum wage violation by a car dealership in the Cleveland area.

On July 5, after a year in court, Scott Perlmuter and Allen Tittle helped local car salespeople obtain a $250,000 settlement with their employer, a group of automobile dealerships. The settlement represents compensation that Tittle & Perlmuter alleged was owed to the salespeople for unpaid minimum wages accruing over the past several years. Because the case was filed and pursued as a collective action, this settlement is available to the named plaintiff and his fellow salespeople who opt-in to the action.

minimum wage violation

The plaintiff came to Tittle & Perlmuter seeking answers for what he believed to be an illegal pay practice violating the Fair Labor Standards Act, 29 U.S.C. §§ 201-219, by his former employer, one of the dealerships in this group. We alleged that the plaintiff and other salespeople at the automobile dealership group were paid only commissions, bonuses, and spiffs, resulting in pay periods where they received less than minimum wage.

The dealership group contended that their pay practices were authorized by certain minimum wage exceptions for commissioned sales employees set forth by the U.S. Department of Labor. However, through aggressive investigation and advocacy, we were able to position the case for favorable resolution for our client and his former co-workers. The settlement is intended to make available the full amount of alleged unpaid minimum wages, plus an extra quarter of those wages as liquidated damages, plus our attorneys’ fees and costs.

If you have questions about minimum wage or overtime laws under the Fair Labor Standards Act or Ohio Revised Code, please contact us. Our experienced wage and hour attorneys are here to answer all your questions and help you make sense of your particular compensation structure. For more information about Tittle & Perlmuter, please visit