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Case ID: 2702 | Employment | 09/16/2003
The class has been certified in a California class action filed against business products service company IKON Office Solutions, Inc., on behalf of commissioned salespeople who allege that the company compels them to return commissions on failed accounts in violation of California unfair business practices and labor laws. The trial will now enter a third phase to determine the exact amount of restitution IKON must pay to its California sales force on account of charged back commissions due to customer lease defaults since September 25, 1997.
The action alleged that named plaintiff Marilyn Baker, a salesperson for Ikon, sold a 60-month lease to a company named Softworld Services for 11 copiers and 12 fax machines, for a total of $152,229 in October 1996. The court found that the lease was approved on October 29, 1996. The equipment was delivered on November 7, 1996, and Ms. Baker was paid a commission of $14,725 on November 27. The lease was financed through a subsidiary of IKON that paid its parent company in full for the entire value of the lease. Softworld, however, never paid anything on the lease, and eventually declared bankruptcy. IKON charged back 30% of the commission against future commissions that Ms. Baker would make. The court determined that IKON violated California's labor laws when it enforced its compensation plan, charging back part of the commission Ms. Baker had earned. It ruled that the commission was paid at the time the lease was paid for, instead of finding that the commission was merely an advance which might have been legally charged back under California law. Since the salesperson was not responsible for the decision to extend credit to the customer, the court ruled that IKON engaged in unfair competition with respect to all California salespersons by making the employees bear a business loss of a lease default. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Employment Cases of Interest A racial discrimination lawsuit filed against Woodward Governor Co. has now been as a class-action lawsuit. The ruling, issued by Judge Philip Reinhard, opens the case to at least 117 current and former minority workers at the Loves Park-based fuel control manufacturer. "This is a very significant junction," said Jennifer Soule, lead attorney for the 16 plaintiffs who originally brought the suit. "Because it's been certified as a class action, the plaintiffs can potentially obtain relief on behalf of all African Americans, Hispanics and Asians who have worked for the company for a number of years."
The lawsuit, which was filed in May 2003 in U.S. District Court in Rockford, alleges that 14 blacks, one Hispanic and one Asian were intentionally discriminated against by Woodward because of their race. The suit also claims that Woodward has a racially hostile work environment and a racial composition less than the overall work force of Winnebago County.
A class action lawsuit has been filed in United States District Court for the District of Delaware against Fresh Cut Lawn Service, Inc.. The case involves violations of federal labor law. No additional information about the substance of the allegations is available at this time. Classactionamerica.com will monitor this case and provide additional details as soon as they become available. A statewide collective action has been filed in Florida against Suncoast Moving & Storage Corporation and Paychex Business Solutions, Inc. The action is brought on behalf of all hourly "non-exempt" employees who have not been paid overtime compensation for all hours worked beyond 40 per week. The action is brought under the federal Fair Labor Standards Act and seeks statutory and liquidated damages as well as injunctive and declaratory relief. As a collective action, all potential class members must "opt-in" in order to be considered part of the class. The employees have requested that the court issue notice to all potential claimants. The parties have reached a tentative $16+ million settlement in a class action filed against New York Life insurance Company on behalf of current and former agents who contracted with New York Life before January 1, 1991. The action alleges that New York Life violated the Employment Retirement Income Security Act of 1974 by paying its “Non-Qualified Benefit” only a select group of established agents known as "Senior Nylics." Persons eligible to take part in the settlement should contact attorneys for the class as soon as possible. If a store manager tells you that you need to work before or after you actually clock in, chances are that he may be breaking the law. A class action has been filed against Wal-Mart Stores, Inc. on behalf of current and former Wal-Mart and Sam's Club employees in Minnesota who allege that the company has refused to pay them overtime and for meal and rest breaks since 1998 in violation of state labor laws.
Current and former Caribou Coffee employees alleges Caribou misclassified its store managers and managers-in-training under the Minnesota and federal Fair Labor Standards Acts to avoid paying them overtime. The class action lawsuit that was filed claims three former Caribou Coffee managers from Minnesota routinely worked 55 hours a week as store managers but spent most of their time performing nonmanagerial duties including waiting on customers, making coffee drinks and cleaning store bathrooms. |
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