A major legal battle is unfolding in California, where a former employee has accused a prominent automobile company of systemic labor violations. On November 13, 2025, Raymond Emanuel filed a complaint in the Superior Court of California, County of Sacramento, against Subaru of America, Inc., alleging multiple breaches of the California Labor Code. The lawsuit highlights issues such as willful misclassification of employees and failure to comply with wage and hour laws.
Raymond Emanuel’s complaint is rooted in the California Labor Code Private Attorneys General Act (PAGA) of 2004. This act allows employees to file lawsuits on behalf of themselves and other aggrieved workers for labor code violations. Emanuel claims that Subaru of America has consistently misclassified its sales consultants as independent contractors rather than employees, thereby denying them essential rights and benefits. According to the complaint, this misclassification violates several sections of the California Labor Code, including sections 204, 210, 226, and more. Emanuel asserts that he and other similarly situated individuals were paid commission wages without proper employee classification or protections. He alleges that Subaru exerted significant control over his work environment while failing to issue compliant wage statements or track hours worked accurately.
The crux of Emanuel’s argument lies in what is known as the “ABC Test,” which determines whether a worker is an independent contractor or an employee under California law. Emanuel contends that Subaru fails all three prongs of this test: they controlled his work performance; his role was integral to their business model; and he did not engage in an independently established trade or business. These assertions are backed by examples from his employment experience at Maita Hyundai Subaru in Sacramento, where he was required to follow detailed instructions set by Subaru for customer service programs like “Care Connect.”
Emanuel seeks various forms of relief from the court. He demands civil penalties for each violation under PAGA guidelines—amounts that could reach up to $25,000 per infraction if deemed part of a pattern or practice by Subaru. Additionally, he requests penalties for late wage payments and inaccurate wage statements alongside attorney fees and costs incurred during litigation.
Representing Raymond Emanuel is Melmed Law Group P.C., with attorneys Jonathan Melmed, Kyle D. Smith, and Jaqueline Antillon leading the charge. The case is being heard in front of judges at the Superior Court for Sacramento County under Case Number [not provided]. The outcome could have significant implications not only for Subaru but also for labor practices across industries reliant on similar employment models.
Source: 25CV027444_Raymond_Emanuel_v_Subaru_of_America_Complaint_County_of_Sacramento_California.pdf
