LGCY Power, a solar energy company, settled a class-action lawsuit in 2023 for $3.82 million over claims of misclassifying door-to-door salespeople as independent contractors. This denied them employee benefits like overtime pay and minimum wage.
The 2023 lawsuit against LGCY Power centered on how they categorized their door-to-door salespeople. Plaintiffs, including Robert Green, Anthony Ruiz, John Tanner, and 50 others, alleged they were misclassified as independent contractors, denying them crucial employee benefits between 2015 and 2022.
Key Allegations:
- Control over Work: The lawsuit claimed LGCY Power dictated work schedules, provided sales leads, and mandated company uniforms, showcasing control inconsistent with independent contractor status.
- Unpaid Work: Training, non-sales activities, and even business expenses allegedly went uncompensated, further contradicting independent contractor classification.
Denial and Settlement:
LGCY Power denied the allegations but settled for $3.82 million. This settlement provided class members with back pay, damages, and attorneys’ fees.
Significance and Takeaways:
- Proper Classification Matters: This case highlights the critical nature of accurate worker classification, as misclassification can deprive employees of essential benefits and protections under labor laws.
- Employer Responsibility: The case emphasizes the importance for employers to meticulously assess factors determining worker classification to ensure compliance with legal requirements.
Resources for Workers and Employers:
- Workers: If you suspect misclassification, seek help from:
- The U.S. Department of Labor
- Your state’s labor department
- An employment law attorney
- Employers: Consult with an attorney or professional to ensure proper worker classification. Refer to resources on the U.S. Department of Labor and your state’s labor department websites.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| June 14, 2023 | Robert Green et al. v. LGCY Power, LLC et al. | Not available (class action settlement) | Not available (likely California District Court) | Door-to-door salespeople sued LGCY Power for misclassification as independent contractors, resulting in denied benefits. Settled for $3.82 million, providing back pay, damages, and legal fees to class members. |
Additional Information:
While the settlement resolves the legal dispute, further details about the case, like specific court proceedings or specific allegations beyond the summary provided, are unavailable due to the ongoing nature of legal settlements.
