Wording Kills Car Dealer Chain's Bid to Arbitrate Wage Claims

Law360 (November 20, 2020, 8:50 PM EST) -- Salespeople suing a Maryland auto dealership chain over employee commissions do not have to arbitrate their claims, a federal judge in that state ruled, finding that the loose wording of the agreement made it invalid.

U.S. District Judge Stephanie A. Gallagher denied a motion by Nationwide Motor Sales Corp. to compel arbitration in a case in which a group of current and former workers allege it inflated vehicle costs to reduce employee commissions. Judge Gallagher ruled that because the language in the agreement gave the company the ability to modify it, the agreement was not binding.

"Plaintiffs cannot be bound by...

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