Case Summary

Michael J. Diaz was hired as a Sales Manager at Mahwah Honda in the fall of 2020 and demoted two months later, with management citing his replacement's ability to speak Spanish as the reason despite it not being a job requirement. When he complained about illegal paycheck deductions and refused to sign an arbitration agreement, he was singled out. After being injured in a work-related auto accident in April 2021, the company delayed his workers compensation treatment, forced him back to work prematurely, cut his pay by nearly 60%, and fired him for job abandonment while he was still under his doctor's care. He filed suit against Mahwah Honda and three named managers for disability discrimination, wage violations, workers compensation retaliation, CEPA, and wrongful discharge.

Background

Michael J. Diaz was hired as a Sales Manager at Mahwah Honda in the fall of 2020. On January 25, 2021, just two months into his employment, he was demoted to salesman despite his excellent performance. His Sales Manager position was given to a friend and former co-worker of Desk Manager Matt O'Donnell. When Mr. Diaz complained about the demotion, he was told by management that they were "going in a different direction." Management later told him the reason for his demotion was that his replacement "speaks Spanish" — though Spanish had not been a requirement of the job when Mr. Diaz was hired. The demotion reduced his pay from approximately $13,000–$14,000 per month to roughly $9,000 per month.

Shortly after the demotion, Mr. Diaz received a paycheck that was $200 short. When he inquired, he was told he had been paid as a Sales Manager in error. He objected and requested documentation of the basis for the deduction — none was provided, and the deductions continued. After he complained about the illegal wage deductions, the company singled him out and began pressuring him to sign an arbitration agreement. To his knowledge, no other employees were required to sign one. Mr. O'Donnell told him he would lose his job if he did not sign. When he complained to the General Sales Manager, Alex Brischler, he was told "You have to," implying his job depended on signing. When he objected to Mr. O'Donnell, Mr. O'Donnell replied, "Well, I don't know where you're going to work then." After Mr. Diaz continued to refuse, the pressure eventually stopped.

On April 10, 2021, Mr. Diaz was rear-ended while traveling between dealerships for work and sustained back, neck, and shoulder injuries. He promptly notified Mahwah Honda. The company delayed in providing workers compensation information, benefits, and treatment. After retaining a workers compensation attorney, Mr. Diaz received authorized medical treatment and was placed out of work by two doctors over the following weeks. In early June 2021, despite his workers compensation doctor having ordered him to remain out of work, Mr. Diaz received an email from Head of Human Resources Pedro Gaudencio claiming the doctor had "changed his diagnosis" and directing him to return to light duty on June 12, 2021. When Mr. Diaz contacted the doctor, the doctor said his return was "out of his hands" but sympathized with him.

Upon returning on June 12, Mr. Diaz was placed in a back room answering phones and told he would be paid only $20 per hour — a reduction of nearly 60% from his Sales Manager pay. After working through significant pain for several days, Mr. Diaz left work on June 14 and was again placed out of work by the workers compensation doctor following a reevaluation on June 16, 2021. He attempted daily contact with Mr. Gaudencio and Mr. Brischler seeking a return-to-work date. His calls and texts went unanswered for over a week. Mr. Brischler denied receiving any messages and Mr. Gaudencio claimed he had purchased a new phone. In a conversation at the dealership on June 23, Mr. Gaudencio represented that "everything looks good, we should be bringing you back soon, probably today or tomorrow." Later that day, Mr. Diaz's texts to Mr. Gaudencio stopped delivering via iMessage and his calls went straight to voicemail — he concluded Mr. Gaudencio had blocked his number. On June 30, 2021, Mr. Brischler called Mr. Diaz and fired him for "job abandonment" — without any prior notice that he was required to return to work.

After his termination, Mahwah Honda contested Mr. Diaz's unemployment benefits by falsely claiming he had violated a company policy. Mr. Diaz appealed. An unemployment hearing officer found in his favor, determining that no company policy had been violated and that the company had failed to even identify a relevant policy. His unemployment benefits were delayed by approximately four months as a result.