From the Independent Contractor Compliance and Misclassification Legal Blog (to which I recommend you should subscribe), Richard Reibstein reports on a class action lawsuit that allegest that Mary Kay consultants were misclassified. Richard writes:
A class action complaint was filed in New Jersey federal district court by direct selling beauty consultants against cosmetics retailer, Mary Kay, Inc., alleging that they were misclassified as ICs in violation of the New Jersey Wage Payment Law. The beauty consultants allege that the company requires that the beauty consultants purchase designated minimum amounts of Mary Kay products or face termination, and that Mary Kay exercised extensive direction and control over the manner and means of their performance by establishing rules requiring non-negotiable payments for sales and marketing materials, by prohibiting them from formulating and selecting their own marketing methods, by requiring them to wear uniforms sold by Mary Kay to the consultants at set prices when attending company events, and by requiring them to pay for all ads although they were only permitted to advertise using pre-approved ads created by the company. Collins v. Mary Kay, Inc., No. 2:15-cv-07129 (D.N.J. Sept. 28, 2015).
Source: September/October 2015 Independent Contractor Compliance and Misclassification News Update
