We Stop Wage Theft attorneys are investigating a potential class action based on claims that iHire wrongly classified some of its workers as “independent contractors” in order to avoid paying them overtime compensation. Independent contractor misclassification is a common form of wage theft. Companies wrongfully label employees as independent contractors to avoid paying them overtime and other employee benefits.
Who Does This Affect?
Anyone in the United States who has worked for iHire as an independent contractor.
How Can a Lawsuit Help?
Workers often bring claims for unpaid overtime as a class action. This means that a small group of workers can bring legal claims on behalf of a much larger group of similarly situated workers. If the case is successful, a larger group of iHire independent contractors could receive the overtime wages and other back pay they are owed and force iHire to halt its abusive employment practices in the future.
What is the Case About?
Workers are claiming that iHire, a website dedicated to connecting employers with prospective job seekers, mislabeled some of their workers as independent contractors. This allowed iHire to avoid paying these workers overtime compensation and state-mandated minimum wages.
By treating workers as independent contractors instead of employees, businesses also can escape paying unemployment taxes, Social Security taxes and Medicare taxes, and sick pay. Contractors also have no legal rights to form unions, to take leave under the Family Medical Leave Act (“FMLA”), or maternity leave. They don’t even have the right to meal and rest breaks.
Despite being classified as independent contractors, these iHire workers actually operated as regular hourly employees. This is because iHire retained the right to control the work they performed did and how they did it. The more control that the company exerts over someone’s work, the less likely it is that he or she is an independent contractor.
Reports allege that many iHire contractors worked more than 40 hours per week, but never received overtime pay. The practice of independent contractor misclassification violates employees’ rights under the federal Fair Labor Standards Act (“FLSA”) and state wage and hour laws. These laws require employers to pay non-exempt employees overtime in the amount of one-and-one-half times their hourly pay rate for all time worked in excess of 40 hours per week.
Can I Join A Class Action Against iHire?
We will promptly evaluate your claim and let you know whether you are eligible to participate in a lawsuit for unpaid wages.
Do I Have to Pay Attorney’s Fees?
No. Attorneys typically handle class action claims for unpaid wages on a contingent fee basis. This means that the lawyers don’t get paid fees unless they obtain a recovery for you.