A class action lawsuit has been formed combining roughly 275 people in a single suit against Vacation Charters Ltd. and, owner of the Split Rock Resort in Lake Harmony and other similar timeshare resorts, W. Jack Kalins. The disputes are due to overpaid taxes that each employee had to pay because they had been classified as independent contractors for selling timeshares. They were also not allotted any employee benefits such as medical coverage. Had the workers been treated as employees it would have obligated Kalins to provide them with benefits as well as pay a portion of their federal tax contributions.
The ruling by Judge Idee C. Fox is what will allow these over 275 salespersons to file in a single lawsuit instead of having to file individually. Attorney Mark Kearney, who will be working in favor of the workers, has estimated there will be a total of 21 million owed to the salespersons.
The ruling will be for salespersons who were employed from June of 2005 to the end of 2008. At the beginning of 2009 the timeshare company began paying salespersons as employees, providing benefits and paying part of their federal tax contributions. Attorney Steven Leventhal for Vacation Charters maintains that they have paid all their salespersons based on state law and that no violations were enacted on behalf of the timeshare company.