Cook County Record

Monday, December 9, 2019

Lawsuit accuses Jack Phelan Chevy of underpaying sales personnel, conducting commission 'scheme'


By Charmaine Little | Jan 23, 2019

Car accident 06

A Chicago area Chevrolet dealership is facing a wage and compensation lawsuit for allegedly underpaying its workers. 

The plaintiffs, who all worked in sales for Jack Phelan Chevrolet, filed the lawsuit in Chicago federal court on Jan.11 against the dealership and John C. Phelan Jr., claiming they were signees on a Sales Person Compensation Agreement that provided them a salary and commission. Under that agreement, they were supposed to make from $100 to $450 per week as a salary. Their commission was slated for between 25 to 35 percent on the gross profit of their sales.

The plaintiffs said they were paid less than the minimum wage amount that is required under the Fair Labor Standards Act, the Illinois Minimum Wage Law, and the Cook County Minimum Wage Ordinance. The plaintiffs also said they were refused commissions they earned under the compensation agreement, which is required under the Illinois Wage Payment and Collection Act. Along with alleged violations of federal, state and local acts, the plaintiffs also filed the lawsuit for breach of contract over the disputed commissions.

Finally, the plaintiffs claimed the dealership came up with a “scheme whereby it manipulated the gross profits of cars sold, thereby reducing its sales representatives’ commissions and increasing its own profits,” according to the lawsuit. 

They request an award for unpaid commissions, prejudgment interest, attorney fees and costs and any other relief the court sees fit.

The plaintiffs are represented by attorneys Maureen Salas, Douglas Werman, Sarah Arendt and Zachary Flowerree, all of the firm of Werman Salas P.C., of Chicago.

U.S. District Court for the Northern District of Illinois Case No. 1:19-cv-00221

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U.S. District Court for the Northern District of IllinoisJack Phelan ChevroletWerman Salas PC.

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