Dog Walkers Seek Approval of $1.05 Million California Misclassification Lawsuit Settlement

A California misclassification lawsuit has reached a preliminary $1 million settlement between nearly 38,000 dog walkers and Wag Labs Inc.

The part-time dog walkers allege they have been misclassified as independent contractors when they’re really entitled to the same legal protections as employees.

Lead plaintiff Gary D. claimed he and other dog walkers were required to work off the clock because they were not paid for the time they took preparing for the walk, harnessing and de-harnessing the dogs, or waiting to be provided directions to retrieve the dog at the owner’s home.

Gary says that as a result of the alleged California misclassification, the workers were paid “less than required minimum wages.”

The dog walkers alleged Wag committed several violations of the California labor code, including failure to pay wages and minimum wage, failure to provide wage statements, misclassification, and failure to reimburse business expenses, according to Law360.

Even though the $1.05 million California misclassification lawsuit settlement amounts to only about $17 per dog walker, Class Members expressed satisfaction with the settlement offer, Law360 reports. As a result, the dog walkers have requested a California federal judge approve the settlement.

Lead plaintiff Gary would receive a maximum of $15,000 for initiating the California misclassification class action lawsuit in September 2017. Attorneys representing the class could receive a maximum of $375,000 of the settlement fund and expenses totaling $5,420.

Wag would be on the hook for $75,000 in administrative settlement costs, and because the claims were made under the California Private Attorneys General Act, Wag would make an additional $50,000 payment. Twenty-five percent of that (about $12,500) would be with the settlement and the remaining $37,500 would benefit California’s Labor and Workforce Development Agency.

California Misclassification Echoes That of Uber

Wag Labs has called itself “the Uber of dog walking services” for several reasons. The dog walkers and dog owners are matched through the company’s website or phone app. In 2014, Wag was co-founded by Joshua Viner and Jason Meltzer, who originally founded Surfdog LA, another dog walking service company. The app launched in 2015.

Misclassification can deprive workers of their proper compensation and legal protections under California law. Merely declaring that a worker is an “independent contractor” doesn’t necessarily make it so. A detailed legal test determines whether a worker is really a contractor or is instead an employee. For misclassified workers who qualify as employees, their employers may owe them compensation for minimum wages and overtime pay, and they may be entitled to both paid and unpaid meal and rest breaks under California law.

Workers who believe they have been victims of California misclassification or those who have been required to work off the clock or without overtime pay within the past three years could be eligible to pursue compensation through legal means.

The California Misclassification Lawsuit is Case No. 2:17-cv-07014, in the U.S. District Court for the Central District of California.

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