TODAY
Most Read
Business Journal Events
Former Fresno CarMax buyer sues for overtime pay
- Details
- Published on 03/22/2012 - 2:10 pm
- Written by Business Journal staff
A class action lawsuit filed today in Fresno claims that the nation's largest used-car retailer CarMax failed to pay roughly 1,500 of its buyers nationwide adequate overtime pay.
The case, filed in United States District Court in Fresno, was brought by Michael Luchini, a former buyer at CarMax's Fresno outlet.
According to the lawsuit, CarMax violated the Fair Labor Standards Act by unlawfully classifying exempt employees in covered positions, or those protected from breach of contract like buyers.
Buyers collect information on used vehicles, attend auctions, and both bid on and inspect vehicles to be sold at the company's 103 retail locations nationwide.
Luchini says since they take part in mandatory training, adhere to CarMax's detailed policies and practices and use the company's comprehensive systems in performing their job duties, they should not be considered exempt from overtime payments in federal and state laws.
"CarMax's great success in the used vehicle sales market rests in part on the hard work and long hours of its dedicated buyers," said Luchini in a press release. "We work through early mornings, meal times and late evenings for the company. We just ask to be paid for the hours we have worked, according to what the law requires."
Luchini was employed from 20007 to 2012 at CarMax's Fresno superstore, located near the intersection of Herndon and Palm avenues.
Attorney Kelly Dermody of Lieff Cabraser Heimann & Bernstein, is representing Luchini in the case.
CarMax, based in Richmond, Va., was founded in 1993 and has around 15,500 employees.
CarMax reclassified it's California buyers-in-training (BITs) to nonexempt status following a similar case settled in 2009. However, the company's California buyers, senior buyers and all non-California employees in covered positions remained exempt from overtime.





