From JDSupra, Richard Reibstein discusses a recent case in which phlebotomists settled a claim alleging that they were misclassified as independent contractors. Richard writes:
MEDICAL COMPANIES SETTLE PHLEBOTOMISTS’ IC MISCLASSIFICATION CLASS ACTION. A California federal court has given preliminarily approval to a $700,000 class action settlement between group of 118 phlebotomists and three medical companies in a class action lawsuit alleging wage and hour violations under California state law due to their alleged misclassification as independent contractors and not employees. According to the class action complaint, LabCorp (a provider of leading-edge medical lab tests and services through a national network of primary clinical and specialty labs), Examination Management Services, Inc. (a medical information services provider), and Soko United Corp. (a company that facilitates the supply and administration of phlebotomists for LabCorp and EMSI) are joint employers of the phlebotomists. The phlebotomists alleged they performed services under the direction of the defendants, who allegedly determined the rate and method of the phlebotomists’ compensation; supervised and controlled the quality and quantity of the work; and required the phlebotomists to follow mandated work schedules, work at LabCorp’s work sites or other location of LabCorp’s choosing, follow a dress code, use the tools and materials on-site provided by the defendants and to attend online training. The phlebotomists also alleged that they worked alongside other phlebotomists who were classified as employees, yet they performed the same or materially the same functions. The settlement provides that EMSI shall pay $410,000; Soko will pay $150,000; and LabCorp will pay $140,000. Gonzalez v. Examination Management Services, Inc., No. 17-cv-1077(S.D. Cal. Apr. 30, 2019).
Read the full newsletter at April and May 2019 Independent Contractor Misclassification and Compliance News Update | Locke Lord LLP – JDSupra