Lithia Motors Inc. has finally closed the door on lawsuits filed against DCH Auto Group Inc. over service technicians' wage-and-hour issues, with a $3.6 million settlement. Including previously settled claims, the total payout was $4 million.
The Los Angeles Superior Court designated on May 18 that the settlement be divided among more than 400 mechanics from 19 California dealerships.
The settlement resolved residual lawsuits filed against DCH, some as far back as 2012, before Lithia acquired the group in 2014, Lithia attorneys said. The litigation charged the automotive group violated Labor Code standards, including refusing to pay all wages earned and failing to pay the minimum wage. DCH also was accused to falsifying time records to reflect breaks and meals the workers were not granted.
While the settlement concludes litigation for service workers, lawsuits are still outstanding on behalf of other employees, including service writers, salespeople and clerical workers.