High court: AutoNation must pay $2.5 million in back vacation pay
SEATTLE -- The nation's largest group of car dealerships must repay millions of dollars following a state Supreme Court decision in favor of the more than 550 current and former workers of the company in Washington.
Hundreds of AutoNation's employees alleged the company, which owns dealerships in Seattle, Bellevue and Spokane, did not pay them for their promised paid vacation time.
"I pretty much said, 'What the hell is this?'" said former employee Steffany Ross. "I went to the office manager. She couldn't answer the question. She called corporate, said, 'That's the way it is based on the new pay plan."'
In 2005, AutoNation changed its vacation policy, wiping out any vacation time current employees had already earned. At the time, the company said employees would not lose any paid vacation time. But hundreds of workers were never paid for their unused vacation hours accrued between 2004 and 2005.
"The last thing they said was, 'You need to sign this before you leave. And I said, 'Am I going to get paid?' And they said, 'Yeah, of course you are.' And when I came back and got my paycheck, I got paid for one whole hour." Ross said.
Prior to the change, company policy granted workers one week of paid vacation after a full year of employment, two weeks after two full years and three weeks after 10 years.
When their payments never came, more than 550 employees sued, alleging, in part, that AutoNation violated state wage statutes and breached its contractual obligations to provide earned vacation benefits.
"They deserved nothing less, especially in this economy where these are just hard-working employees just trying to make ends meet," said Toby Marshall, Ross' attorney.
The case reached Washington's Supreme Court, which upheld a lower court's decision that declared AutoNation's actions illegal. The former and current employees were awarded more than $2.5 million in pay.
But AutoNation spokesman Marc Cannon said the company paid the money, but is "not going to change their policy." The company still claims its employees "did not lose any vacation time," according to Cannon.
Ross, however, was reimbursed $4,400 in lost vacation time by the high court, who upheld a prior decision by the lower court.
"Feels awesome. I'm getting money," she said.
No other lawsuits have been filed against the company.
Hundreds of AutoNation's employees alleged the company, which owns dealerships in Seattle, Bellevue and Spokane, did not pay them for their promised paid vacation time.
"I pretty much said, 'What the hell is this?'" said former employee Steffany Ross. "I went to the office manager. She couldn't answer the question. She called corporate, said, 'That's the way it is based on the new pay plan."'
In 2005, AutoNation changed its vacation policy, wiping out any vacation time current employees had already earned. At the time, the company said employees would not lose any paid vacation time. But hundreds of workers were never paid for their unused vacation hours accrued between 2004 and 2005.
"The last thing they said was, 'You need to sign this before you leave. And I said, 'Am I going to get paid?' And they said, 'Yeah, of course you are.' And when I came back and got my paycheck, I got paid for one whole hour." Ross said.
Prior to the change, company policy granted workers one week of paid vacation after a full year of employment, two weeks after two full years and three weeks after 10 years.
When their payments never came, more than 550 employees sued, alleging, in part, that AutoNation violated state wage statutes and breached its contractual obligations to provide earned vacation benefits.
"They deserved nothing less, especially in this economy where these are just hard-working employees just trying to make ends meet," said Toby Marshall, Ross' attorney.
The case reached Washington's Supreme Court, which upheld a lower court's decision that declared AutoNation's actions illegal. The former and current employees were awarded more than $2.5 million in pay.
But AutoNation spokesman Marc Cannon said the company paid the money, but is "not going to change their policy." The company still claims its employees "did not lose any vacation time," according to Cannon.
Ross, however, was reimbursed $4,400 in lost vacation time by the high court, who upheld a prior decision by the lower court.
"Feels awesome. I'm getting money," she said.
No other lawsuits have been filed against the company.