From HRDive, Emilie Shumway discusses the allegations by a direct sales coach that Beachbody misclassified sales coaches as independent contractors. Emilie writes:
Dive Brief:
- The Beachbody Co., a multilevel marketing company that sells workout videos, nutritional supplements and other diet- and wellness-related goods and services, misclassified its sales workforce as independent contractors, a direct sales coach has alleged in California lawsuit Lyons v. The Beachbody Co.
- According to the putative class-action suit, filed May 22, Beachbody and other MLMs rely on a direct-sales exemption under California law, which applies to those involved in “in-person” sales, such as those who go door to door. The exemption does not apply to Beachbody’s modern, online business model, in which “Beachbody accepts and processes the sales and fulfills the orders, while also collecting and benefiting from the consumer data it acquires from these leads,” the lawsuit alleges.
- Beachbody pushed back against the allegations in a statement to HR Dive. “The independent contractor status of direct sellers is well recognized on a federal and state level. California’s updated contractor law (AB5) includes an express exemption for network marketing distributors as part of a well-established legal framework that allows distributors to remain independent and allows them to work as much or as little as they want, controlling their own schedules,” the company said. “We will vigorously defend ourselves against these allegations.”
Read the full story at Beachbody misclassified coaches as independent contractors, worker alleges in class-action lawsuit | HR Dive
