Zimmer Settles Employee Misclassification Class Action for $7.3M

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From Orthopedics This Week, Kim Delmonico reports on the preliminary approval of a settlement of claims that sales representatives were misclassified as independent contractors. Kim writes:

The United States District Court for the Northern District of California has issued an order granting preliminary approval of a class settlement agreement between a class of independent contractors and Zimmer Biomet Holdings, Inc. and its subsidiaries.

The lawsuit originated when a California sales associate sued Zimmer U.S., Inc., Biomet U.S. Reconstruction, LLC, and Biomet Biologics, LLC. Per the plaintiff’s motion for preliminary approval of amended class action settlement agreement, the sales associate alleged that the companies “unlawfully misclassified California sales representatives as independent contractors.”

The plaintiff’s relationship with Zimmer began when he began selling orthopedic devices to physicians and hospitals in San Francisco, California. Per his sales associate agreement with Zimmer, the plaintiff was classified as an independent contractor. As an independent contractor, he was a member of a sales team in his region and his team was paid on a commission-only “pooled” arrangement.

In addition to the settlement fund, “class members currently contracting with Zimmer will also be offered full employment as IRS form W-2 employees.” Reclassification will entitle the employees to rights and protections under California law that are not available to independent contractors.

Read the full story at Zimmer Settles Employee Misclassification Class Action for $7.3M | Orthopedics This Week

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