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In 2012, a Porsche dealership owned by Republican U.S. Senate nominee Bernie Moreno recruited a general manager from Virginia with decades of experience selling the German sports cars. A year and a half later they cut ties with the salesman, and pretty soon he was in court claiming Moreno hadnāt delivered on the pay package that lured him to Ohio.
From hiring to firing
Before agreeing to take the job, Michael Falconeās complaint states, he wanted assurance that the move to Ohio would make financial sense. The offer on the table was $80,000 in base pay as well as a commission of 5% of the dealershipās ātotal variable gross profit.ā
In a follow-up email exchange, Falcone pressed Moreno on the terms and according to court documents, Moreno wrote back, āJust so we are clear, you will get paid on ALL VARIABLE gross profit.ā
Falcone signed the offer sheet the following day and began work shorty after. His complaint describes working for several months before asking for documentation so he could double check his commission. āDespite multiple requests,ā Falcone argued, the company didnāt provide the kind of sales information that would help him calculate what he was owed.
Whatās more, Falcone contends that after he began asking about his compensation, his superiors retaliated against him and āembarked on a concerted campaign to force Mr. Falconeās resignation.ā
Falcone was demoted from general manager to used car manager and stripped of responsibilities. In January of 2014, after heād been working there for about a year and a half, Falcone was terminated. The company said he was being let go because of unsatisfactory performance and a āpermanent reduction in force.ā
But that round of downsizing was exceptionally narrow. Falcone was the only employee dismissed.
Falcone alleged that the manager in the meeting told him he would not receive his outstanding compensation until he signed the termination agreement. He did so, albeit reluctantly, because he wanted to be paid, and because he understood the reduction in force designation would make him eligible to collect unemployment compensation.
They didnāt give him a copy of the form when we left and Falcone got an unsettling surprise when he emailed the human resources department asking them to provide one.
āWhen HR e-mailed him a copy of the form, it was clear that the form had been altered after it had been signed and without Mr. Falconeās knowledge or consent,ā the complaint states. āSpecifically, the line indicating that his termination was, in part, due to a permanent reduction in force had been whited out, leaving only the unsupported allegation of unsatisfactory performance as the sole reason for Mr. Falconeās termination.ā
To claim unemployment benefits in Ohio a worker must be out of workĀ through no fault of their own. If Falcone was terminated for his performance, and nothing but, it could have complicated his application.
Morenoās response
In court filings, Moreno shared a copy of Falconeās signed offer sheet. He argued Falcone canāt assert he was relying on Morenoās representations in an email when he signed a form the following day.
Falcone ācannot conceivably demonstrate reasonable reliance on his communication with Mr. Moreno on June 28, 2012 because he clearly signed the Pay Plan on June 29, 2012 that specifically outlines the terms of his monthly incentive,ā Moreno argued.
As for Falconeās termination, Moreno acknowledged Falcone was the only one fired and that they did alter the termination form.
āDefendants admit that the termination form was altered,ā Morenoās attorneys wrote, ābut this was done to correct an error on Defendantsā part and was not done to accomplish a fraudulent purpose.ā
But Moreno argued even if they had engaged in fraud to get Falcone to sign the form, it would be irrelevant. After all, Falcone was an at-will employee.
Morenoās dealership was āentitled to terminate him for any reason or for no reason whatsoever ā regardless of whether he signed the form,ā the filing states. āTherefore, it is immaterial for (Falcone) to argue that he would have refused to sign the Form if the only listed reason for termination was unsatisfactory performance.ā
Although Falcone complains the changes to the termination form jeopardized his unemployment claims, āglaringly absent,ā Moreno argued, āis any factual allegation that he was denied unemployment compensation benefits as a proximate result of signing the Employee Termination Form.ā
In March of 2016, Moreno and Falcone settled out of court.
What now?
Speaking to reporters at campaign event in Chillicothe, Moreno called Falcone āa good guy,ā but added āin any business, somebody doesnāt perform, they typically donāt blame themselves, they blame others.ā
āThis was a disgruntled employee that filed the suit,ā he added, āand like all businesses, we eventually settle these things, because itās cheaper than litigation.ā
Look at his hundreds of happy employees, Moreno argued. Look at hisĀ top workplace awards.
But to Morenoās political opponents, the Falcone case echoesĀ wage theft cases filed against Moreno in Massachusetts. In that dispute, Morenoās employees argued he had improperly withheld time-and-a-half pay. The court ordered him to maintain documents related to the case, but he shredded overtime reports. Moreno argued the underlying data was still intact, but the judge and the jury werenāt buying it. He was ordered to pay more than $400,000.
In a statement, Ohio AFL-CIO president Tim Burga argued āthe choice for Senate in Ohio is easy. While (Democratic U.S. Sen.) Sherrod Brown looks out for Ohio workers, Bernie Moreno continues to show them that he only cares about himself.ā
āWith working people your word is your bond,ā he added. āSherrod Brownās word is good while Moreno has proven he canāt be trusted.ā
Tiffany Muller who heads up the organization End Citizens United argued the cases demonstrate a āclear pattern.ā
āMorenoās record of wage theft should be disqualifying,ā she said. āIf he canāt be trusted as a business owner, how can he expect Ohio voters to trust him in the Senate?ā
Follow OCJ ReporterĀ Nick Evans on Twitter.