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Herb Chambers fights class action lawsuit over unpaid overtime and wages
The ongoing litigation continues after last week's sale of The Herb Chambers Companies and nearly all of its dealerships in New England for $1.34 billion.
The Herb Chambers Companies is fighting an ongoing class action lawsuit, alleging that it failed to pay hundreds of its employees thousands of dollars in overtime and premium wages.
Lawyers representing the plaintiffs say they are puzzled as to why the company continues to deny these workers compensation. The car dealership chain recently announced a deal to be acquired by a Georgia dealership group for $1.34 billion.
“I’m perplexed by them digging in,” said Attorney Robert Richardson, of Richardson & Cumbo, who represents the plaintiff. “The amount of money at stake here – likely seven figures – is a drop in a bucket for what they just sold all the dealerships for.”
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In May 2020, Richardson & Cumbo, LLP, a labor and employment law firm dedicated to protecting workers’ rights, filed a class action lawsuit in Middlesex County Superior Court.
The suit was brought on behalf of former finance manager Phillip Geller and other finance managers who allege they regularly worked 40 to 60 hours per week, including Sundays and certain holidays. They claim that owner Herb Chambers and The Herb Chambers Companies failed to pay them the overtime or premium wages required by state laws.
If the court rules in favor of the plaintiffs, hundreds of other employees could also be eligible for lost compensation.
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In court documents, Herb Chambers Companies says it is not the employer of the finance managers and is thus not required to pay them the wages owed.
Richardson argues that the recent sales announcement and other evidence from social media, advertisements, and the press show that they are indeed their employers.
In addition, the Superior Court upheld a 2019 case in which it found that a parts advisor was an employee of the individual dealership and the larger management company, The Herb Chambers Company. Therefore, Richardson argues, the finance manager in this case is an employee.
In the sales announcement, Herb Chambers says it owned 33 dealerships, 52 franchises, and three collision centers, and employed more than 2,000 people.
“The sale drives homes the disingenuous stance that the lawyers are taking in this case,” Richardson said.
The class action lawsuits are among many filed after the Massachusetts Supreme Judicial Court ruled in Sullivan v. Sleepy’s in 2019 that employers could not deduct overtime and Sunday premium pay from employees’ commissions. The case ended the practice of using commissions to offset additional pay for hours worked beyond regular shifts or on Sundays.
The goal, Richardson said, is for The Herb Chambers Companies to pay all finance managers at all Chambers’ dealerships in Massachusetts the overtime and Blue Law wages they are owed — not just the named plaintiff.
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Richardson argues that denying the payment would seem “highly inequitable” to the employees who helped increase the company’s value to $1.34 billion. Herb Chambers is an icon in the community and routinely gives back, Richardson said.
“He seems like someone who would do the right thing and we hope he does,” Richardson said.
Lawyers representing Herb Chambers and The Herb Chambers Companies did not immediately respond to a request for comment.
According to court documents, the next hearing on this case is scheduled for mid-April.
“We anticipate being successful going forward and hopefully get these wages for these employees,” Richardson said.
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