Heba Elsherif  |  October 17, 2018

Category: Labor & Employment

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Woman Files Misclassification of Contractors Lawsuit Against ShutterstockA woman has filed a class action lawsuit alleging the misclassification of contractors on behalf of herself and all others similarly situated against Shutterstock Inc. in the Superior Court of the State of California.

Plaintiff Rebecca C. filed the misclassification of contractors lawsuit demanding a trial by jury.

According to the lawsuit, the company failed to pay overtime wages in violation of the California Labor Code, failed to reimburse workers for business expenses, failed to provide and authorize meal and rest periods, failed to provide time and accurate itemized wage statements,  failed to pay earned wages. The plaintiff also accuses Shutterstock of unlawful and/or unfair business practices in violation of the California Business and Professions Code.

Shutterstock is an American stock photography company that specializes in stock music, stock footage, and editing tools. The company is headquartered in New York City.

Rebecca says that she was employed and classified as an independent contractor by Shutterstock between October 2015 and August 2017. She says she worked for the company as an Image Reviewer and Vector/Illustration Reviewer and performed her work in several of the company’s locations including Sonoma, Calif. However, the complaint alleges that her misclassification and others as independent contractors during that time resulted in an unlawful denial of employee protections.

On a typical day, she says that she would review almost 2,000 images according to detailed guidelines provided by the company. She argues the detailed guidelines that she and others would receive, including other communications from the company’s supervisors, made them unable to be “free from the control and direction of Shutterstock in connection with their performance of content review work” — a qualification that sets her up to be classified as an employee than an independent contractor, the lawsuit explains.

Other alleged violations include failing to pay overtime and of failing to properly pay her and other similarly situated employees job related expenses, including expenses for computer software and hardware and internet and phone charges.

According to the lawsuit, for employees who worked more than 3.5 hours, no ten-minute rest period was provided, and Shutterstock also failed to pay for a “single meal or rest period premium for missed meal or rest periods” to her or other former and current employees.

Overview: California Labor Laws

Rebecca filed the class action lawsuit as a collective action to recover unpaid overtime wages for the misclassification of contractors as required by the Fair Labor Standards Act (FLSA). The class action lawsuit is filed on behalf of all current and former employees for Shutterstock, Inc.

According to the Department of Labor (DOL), “[t]he FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and Local governments.”

There have been thousands of class action lawsuits filed by former and current employees of businesses alleging violations of the FLSA. Many former and current employees for companies filed specifically for unpaid overtime wages, violations of minimum wage law, and misclassification of employment.

Filing an FLSA class action lawsuit can help any employment victim to recover damages and unpaid wages. It can also provide relief for federal and state labor law violations committed by employers and businesses. By filing an FLSA class action lawsuit, Rebecca seeks to represent a group of former and current employees and obtain damages for violations of state and federal labor laws in a single lawsuit.

According to federal laws, overtime pay is set at a rate of not less than one and one-half times the rate of regular pay after an excess of 40 hours per week have been worked. Additionally, federal law sets minimum wage at $7.25 per hour. Violations of overtime pay, misclassification of employment and minimum wage violations allow employees to file wage and hour lawsuits and pursue relief for violations of the FLSA and other federal and state labor laws.

Additional violations may include:

  • Off-the-clock work
  • Unpaid on-duty meal and rest breaks
  • Improper deductions from salaried employees
  • Illegal tipping practices
  • Improper calculation of the regular rate of pay

The Misclassification of Contractors Lawsuit is in the Superior Court of the State of California in and for the County of Sonoma.

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One thought on Woman Sues Shutterstock for Alleged Misclassification of Contractors

  1. Christina Magdadaro says:

    My Mom was a live in caregiver in a Adult Family Home Lakewood Washington. She always tell her employer to file W2 and claim 0 on her income tax. She just start working for this AFH provider in 2018 and inform her that she would like to have her income W2 claimed 0. My Mom speak a little English can also understand a little. In the middle of the year of 2018 she has ask my Mom to signed a paper work without explaining that the AFH provider has changed their filling status to IRS W2 into 1099. Then on 2019 she told my Mom she needs to file her income tax return. My Mom doesn’t drive and not familiar with area so the AFH provider said to have it done through her accountant Rabago. The provider didn’t gave my Mom a any copy or paper worked that she has signed and also her 2018 income Tax. She has inform my Mom around 2019 that she has to pay and owe her $ 3999.00 for income of 2018. The AFH provider inform my Mom she can pay her installment and don’t care how long it will for her to complete the said amount. Also told my Mom not to pay in form of checks at all she repeatedly said it has be paid in form of cash. She has also stated that she needs cash my Mom has ask her how come the amount of what she owes on IRS is to much. My Mom also states to the AFH provider that she always file her income tax return and always get a return at the end. The AFH provider said coz she has change her filling status into 1099 coz it will be better and look good employee as a contract employee. My Mom had worked everyday to pay the AFH employer paid into to 2 installments of $ 2000.00 in cash. My Mom has ask for receipts of payments and also a copy of her 2018 income tax. AFH provider never provided my Mom a copy of her 2018 income tax return or any paper work stating that she owes $ 3999.00 and a the receipt for the said amount paid in full til this very date. Later on my Mom has learned from an ex employee that she’s still paying the AFH provider for her 2018 income tax return in installments coz the provider also has change her filling status into 1099 without any explanation. I didn’t know bout this info til the end of 2020.

    The AFH provider always have have hired a lot older men and women or people that just got here from the Philippines that doesn’t speak or understand English fluently. They are being paid on a daily rate for a live in caregiver 24 hour work. Also she would required them to pick up extra shift or days whenever she doesn’t have enough caregiver that can work. The AFH provider doesn’t pay them overtime, holiday pay or sick time. She has never informed most of her employee bout the sick time that an employee is entitled for.

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