VIPKid teacher misclassification $2.1M class action settlement

VIPKid agreed to a $2.1 million class action settlement to resolve allegations it misclassified California teachers as independent contractors.

The settlement benefits individuals who entered into an agreement with VIPKid to provide teaching services in California and who taught at least one class through VIPKid between May 22, 2018, and June 30, 2021.

VIPKid is a global learning platform designed to help teach children English. The company partners with teachers who lead online classes in English as a second language (ESL) for students.

According to a class action lawsuit, VIPKid violates California law by classifying its teachers as independent contractors instead of employees. Plaintiffs in the case say their work and the control VIPKid had over this work qualified them to be classified as employees.

In California, independent contractors are not entitled to the same benefits as employees. While employees get benefits such as overtime wages, double time and more, independent contractors are not even entitled to minimum wage under state laws. 

Teachers in the VIPKid class action lawsuit claim the ESL platform classified them as independent contractors in order to deny them minimum wage, overtime, meal and rest periods and other benefits.

VIPKid hasn’t admitted any wrongdoing but agreed to resolve these allegations with a $2.1 million teacher misclassification settlement. 

The initial settlement agreement was larger but was renegotiated due to VIPKid’s financial hardship caused by regulatory changes in China. The settlement fund will be paid out over a four-year period starting around December 2022.

Under the terms of the revised settlement, class members can receive a cash payment in four equal installments. Payments will vary depending on the number of virtual ESL classes each class member taught during the class period. Class members who taught a higher number of classes will receive a larger proportional share of the net settlement fund, estimated to be around $1.44 million. Each class member will receive at least $10.

The deadline for exclusion and objection is Oct. 24, 2022. 

Class members who wish to dispute the number of classes they taught on the VIPKid platform must do so by Oct. 10, 2022. 

The final approval hearing for the settlement is scheduled for Nov. 15, 2022.

No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive their share of the fund. Class members can submit their information on the settlement website to receive their settlement payment digitally.

Who’s Eligible

The settlement benefits individuals who entered into an agreement with VIPKid to provide teaching services in California and who taught at least one class through VIPKid between May 22, 2018, and June 30, 2021.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Verification Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Exclusion and Objection Deadline

10/24/2022

Case Name

Ibeji v. VIPKids International, Inc. (d/b/a VIPKid), Case No. STK-VA-UCE-2019-0009895, in the Superior Court of the State of California for the County of San Joaquin

Final Hearing

11/15/2022

Settlement Website

VIPKidSettlement.com

Claims Administrator

Ibeji v. VIPKid
c/o Settlement Administrator
P.O. Box 26170
Santa Ana, CA 92799
vipkidsettlement@simpluris.com
833-200-8007

Class Counsel

Shannon Liss-Riordan
LICHTEN & LISS-RIORDAN PC

Defense Counsel

Damon M Ott
Philip B Baldwin
LITTLER MENDELSON PC