From JDSupra, Richard Reibstein reports on a settlement of claims that door-to-door sales persons were misclassified as independent contractors. Richard writes:
HOME ENERGY COMPANY SETTLES IC MISCLASSIFICATION CLASS ACTION WITH DOOR-TO-DOOR SALES PERSONS. Court approval has been sought to settle a class and collective action between Pennsylvania door-to-door sales agents and two related companies selling home energy contracts. The sales agents alleged that the companies violated the federal Fair Labor Standards Act and state wage and hour laws arising from the alleged misclassification of the agents as independent contractors. According to the complaint, the sales agents contend they were paid entirely on a commission basis regardless of how many hours per week they worked, without overtime compensation, resulting in compensation below the minimum wage. The agents also claimed that they were routinely required to work a certain number of hours; had to wear a company uniform; had to follow a script provided by the companies; were told in what areas to target sales each day; were provided with necessary tools and equipment; did not possess any specialized skills to perform the job; were not permitted to hire or subcontract other qualified individuals to provide additional sales work to enhance their profitability; had a minor relative investment compared to the companies; and were an integral part of the companies’ business. The settlement, which releases only the FLSA claims, provides a gross settlement amount of $500,000 for a limited number of class members with each of the two companies contributing $250,000. McWilliams v. Platinum Advertising LLC, No. 2:21-cv-00607 (W.D. Pa. May 4, 2022).
