The California Labor Commissioner has filed a lawsuit against MobileWash, a car washing business, for allegedly violating wage and hour laws by misclassifying workers as independent contractors rather than employees. Under a recently instituted California law known as AB 5, companies that hire independent contractors must adhere to new regulations regarding employee classification.
About the Mobile Wash AB 5 Lawsuit
Plaintiff and California Labor Commissioner Lilia Garcia-Brower claims that MobileWash has not only willfully misclassified workers, but has also failed to register to operate as a car washing business. MobileWash is an app-based business that allows consumers in several states across the U.S. to schedule a service provider to come to their location and wash and detail their vehicle. Although MobileWash employs car washers as independent contractors who do piecework jobs for the company, a new law in California may require them to classify these workers as employees.
According to the commissioner’s AB 5 lawsuit, the people who work for MobileWash are not true independent contractors, as they are at the direction and control of the car wash company. The company sets requirements and restrictions on the type and quality of the work that is performed, as well as on where the work may be conducted. This is in violation of California Assembly Bill 5 (AB 5).
The commissioner claims that MobileWash has purposefully misclassified its workers in order to avoid paying minimum wage and overtime wages, reimbursing workers for the cost of equipment, supplies, and mileage, providing rest and break periods, and offering paid sick leave.
About AB 5
AB 5 was signed into law in 2019, and went into effect on Jan. 1, 2020. According to the new law, employers who wish to classify workers as independent contractors rather than employees must meet several requirements. In order for a worker to be hired as an independent contractor, a three part test known as an ABC test is used to determine whether they are eligible. All three statements made by the test must be accurate in order for a worker to be an independent contractor. Otherwise, they must be classified as an employee, and given the rights and benefits afforded to employees. In contrast to independent contractors, who often have few legal rights, employees are entitled to minimum wage, overtime pay, meal and rest breaks, worker’s compensation coverage, and unemployment benefits.
The ABC test is made up of three parts. The first statement made by the test is that the worker must be free from the direction and control of the employer. According to the Labor Commissioner’s AB 5 lawsuit, MobileWash fails the first part of the test, as its workers are under the direction of their employer in regards to the type of work they may perform and where they may perform it.
The second part of the ABC test states that workers must perform work that is outside the usual scope of business for their employer. As MobileWash workers wash cars, and MobileWash is a car washing company, it is likely that the company would fail this part of the test as well.
Finally, the third part of the ABC test states that the worker must be engaged in their own independently established trade doing the same type of work they are performing for the employer. In order for this part of the test to be true, workers at MobileWash would also need to have their own car washing businesses in order to qualify as independent contractors.
Many companies have been accused of purposefully misclassifying workers as independent contractors in order to avoid paying minimum or overtime wages, as well as other employment benefits. If you work in the gig work industry in California and believe you have been misclassified as an independent contractor, you may be able to speak with an experienced attorney, and join or file an AB 5 lawsuit against your employer.
The AB 5 Lawsuit is Case No: 20STCV24800, filed in the Superior Court for the State of California, for the county of Los Angeles, Central District.
Join a Free California Wage & Hour Class Action Lawsuit Investigation
If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.
Please note: Top Class Actions is not a settlement
administrator or law firm. Top Class Actions is a legal news source
that reports on class action lawsuits, class action settlements,
drug injury lawsuits and product liability lawsuits. Top Class
Actions does not process claims and we cannot advise you on the
status of any class action settlement claim. You must contact the
settlement administrator or your attorney for any updates regarding
your claim status, claim form or questions about when payments are
expected to be mailed out.
