$1.95M Contractor Misclassification Settlement Reached

A $1.95 million contractor misclassification settlement resolving wage and hour claims has been given initial approval by a California judge.

The contractor misclassification settlement brings an end to a set of allegations brought forward by a group of models, brand ambassadors, and logistic personnel against Moet Hennessy USA and Strategic Experiential Group. The lawsuit claimed that these workers were misclassified as independent contractors, denying them important wage and hour benefits.

SEG works with Moet Hennessy and other promotion companies to promote liquor brands in public venues. The lawsuit was filed in March 2016 by three former workers for the defendants, alleging that the companies knowingly misclassified many of its workers as independent contractors. However, the lawsuit claims, these workers regularly worked shifts longer than eight hours and were constantly managed and supervised — even down to what they wore and said.

The lawsuit alleged that the companies broke several California labor laws. These include denying overtime wages, failing to reimburse workers for uniform expenses, and failing to compensate for denied meal and rest breaks.

Although the companies have maintained since the lawsuit’s original filing that their wage and hour practices obey state labor laws, they recently agreed to a $1.95 contractor misclassification settlement.

Class Members with a valid claim can expect an average payout of around $1,580.

Elements of the contractor misclassification settlement have not yet been resolved. The California judge in charge of the contractor misclassification settlement, Judge Brad Seligman, is not yet satisfied with some of the details, but expects those to be ironed out soon. A revised contractor misclassification settlement agreement is expected in the coming days.

Wage and Hour Regulations

There are a series of both federal and state wage and hour laws put in place to protect workers and ensure they are treated fairly. However, many workers across the country may not know the protections that the Fair Labor Standards Act (FLSA) and state laws offer, which can lead to companies taking advantage of them.

In some cases, workers are misclassified as independent contractors rather than as employees, even if their work duties are more like that of an employee. Misclassification like this can deny workers their proper wage and hour benefits.

Some workers may find themselves unable to file wage and hour complaints like this lawsuit because they are not aware of federal and state labor rules. Others may be afraid that their employers will retaliate or even fire them if they speak up about these kinds of labor violations. To protect workers who help to enforce rules, laws also exist to help workers avoid discrimination based on wage and hour complaints.

Pursuing a Contractor Misclassification Settlement

If you have worked for a company that may have misclassified you as an independent contractor rather than an employee, or otherwise broke federal or state labor laws, you may be able to pursue litigation.

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.

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