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The SJC ruling involved Sleepy’s, the mattress seller. But the ripple effects spread far and wide, affecting everyone in the state that was paid on a 100-percent commission basis. The SJC ruling meant car dealers and furniture vendors were doing it incorrectly: They now had to pay out the time-and-a-half from corporate coffers for overtime and Sundays, regardless of commissions.
Most, if not all, employers have changed their compensation systems to comply with the new law of the land. But it hasn’t always been rosy for the workers. Some dealers closed on Sundays as a result. Other employers cut back on commissions.
Meanwhile, the SJC ruling sparked dozens of additional lawsuits, as employment lawyers poured money into an ad blitz to hunt for plaintiffs. The Baker administration tried to move legislation that would essentially return things to the way they were – but that fizzled amid an outcry from attorneys who represent workers.
Chambers, through spokesman George Regan, said: "Obviously we care very much about our staff, and we just want to move on with our people.”
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It’s unclear how many others have already chosen to settle early, the way Chambers did. Most likely, very few.
Paul Marshall Harris, a partner at Burns & Levinson, said he represents more than 20 auto dealerships that are fighting similar lawsuits. None have settled yet, he said, although one of his major clients is talking about entering mediation discussions.
Then there is Jordan’s Furniture, the Taunton chain owned by Berkshire Hathaway. Several unhappy employees have reached out to The Boston Globe during the past few months to complain that Jordan’s shows no interest in settling. (None of them wanted to go on the record, for fear of reprisal at work.)
Brant Casavant, an attorney at Fair Work P.C. who represents the Jordan’s workers, declined to say if any settlement discussions were underway yet. One issue that has arisen in the Jordan’s case, filed in Middlesex Superior Court last June, is whether a named plaintiff should be included because she worked at a Jordan’s store in New Hampshire. Casavant said Massachusetts law applies because the plaintiff lived in this state, and because Jordan’s is headquartered here.
Representatives for Jordan’s either declined to comment, or did not return calls seeking comment.
With nearly 3,100 potential claimants who worked for Chambers at various times as far back as September 2012, the case also may represent the largest potential group of plaintiffs, among all of these class-action lawsuits. Essentially, the settlement is about back pay, leading up to the date of the SJC ruling.
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As is typical for these matters, the eligible workers won’t get all the money from the windfall. One-third of the $21 million settlement will go to the attorneys. (Fair Work represented the plaintiffs.) Another $100,000 will be set aside to cover administration costs, which presumably include the establishment of a website describing the workers’ rights. They need to submit their claim form by March 30 to get a piece of the action, and a judge still needs to approve the settlement.
The resolution of the Chambers case is being watched closely by those disgruntled Jordan’s workers. They’re not the only ones. Can you blame them, if four-figure payouts are at stake? The Chambers case could be a bit of a bellwether. He is one of the biggest car dealers in New England, and well respected in the industry.
Other employers also contend they did nothing wrong, prior to the SJC decision that switched things up on them, and that they should not have to pay extra as a result. But litigation can be expensive, and it’s rarely fun. How many others settle up like Chambers did remains to be seen. He was among the first. He probably won’t be the last.
Jon Chesto can be reached at jon.chesto@globe.com. Follow him on Twitter @jonchesto.
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February 19, 2020 at 06:37AM
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Herb Chambers settlement over disputed compensation practice to total $21 million - The Boston Globe
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