Coding School Agrees to $1M Settlement After Alleged Labor Law Violations

A coding school, General Assembly Space, Inc., recently agreed to pay over a thousand of their current and past instructors $1 million in order to settle allegations that the school misclassified them as independent contractors rather than employees. As a result of the misclassification, the instructors were not paid minimum wage and overtime wages according to their complaint filed in California federal court.

The motion for preliminary settlement approval the plaintiffs’ counsel stated that they planned to request 1/3 of the settlement amount – approximately $333,333 for attorneys’ fees and another $15,000 for expenses in addition to regular fees. Plaintiffs’ counsel felt this amount was fair as it would allow each class member to receive around $28.35 for every qualifying week they completed on the job.

If the settlement deal is approved it would provide resolution for the 10-count complaint that was filed by John Marin, lead plaintiff in the case. The suit was filed in July 2017 against General Assembly Space, Inc., a New York based online school.

The lead plaintiff in the case, Marin, began working for the school as a lead instructor, full-time in June 2016. He taught three consecutive 3-month immersive data science courses in Lost Angeles, California.

According to Marin, he consistently worked 70-80 hour work weeks and was not given the meal and rest breaks required by law. He also claims he was not paid overtime for his hours over the standard 40 hour work week or given accurate/itemized wage statements. After he completed the instruction of the third consecutive course, he was terminated abruptly. The company then replaced Marin with an employee who was classified as exempt from overtime. Marin was denied unemployment benefits by the company, but California’s Employment Development Department later reversed this denial.

The original complaint asserted claims under the FLSA (Fair Labor Standards Act) in addition to claims under California state labor law and the state’s Unfair Competition Law. He also made claims under the Private Attorneys General Act (allowing workers to sue in order to recover civil penalties on their own behalf and on behalf of other employees in their situation), and the state of California for labor code violations.

Marin later amended his complaint to add another former instructor, Keyan Bagheri, as a lead plaintiff. The district court cut the claims brought under FLSA and soon after, the two parties entered mediation. The parties notified the court that they had reached a settlement agreement in May.

If you have questions about overtime pay or if you are not receiving your meal or rest breaks in accordance with California state labor law and/or the Fair Labor Standards Act, please get in touch with the experienced California employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.

California Supreme Court and Questions Defining “Employers” Liable for Wage Violations

Ramifications of Ayala v. Antelope Valley Newspapers could result in changes for California workers. The California Supreme Court unanimously affirmed a Court of Appeal decision that reversed the denial of class certification in the independent contractor misclassification case. Judge Werdegar, Justice Baxter and Justice Chin all concurred that the Court of Appeal correctly reversed the trial court decision that denied certification in the case of Ayala v. Antelope Valley Newspapers. In the case, Newspaper delivery workers filed against a daily newspaper. They were classified as independent contractors and as such, were denied minimum wage payment, overtime pay, minimum rest and meal period premiums, as well as employer contributions toward Social Security.

The trial court held that there were too many individual inquiries necessary in order to determine how the various newspaper delivery workers handled their day to day operations, but the Supreme Court felt that the trial court missed the point of the case: whether a common law employer/employee relationship exists dependent upon the degree of the hirer’s right to define/control the relationship or how the end result is actually achieved. The Supreme Court further explained their decision by pointing out that while there was evidence of variation in work habits between newspaper carriers, which supports claims made by Antelope Valley’s position that they didn’t control their carriers’ work, this fact didn’t negate the actual question at hand. How much right does the employer (Antelope Valley) have to control what their carriers’ do?

This case reinforces the common proof method that turns to governing contracts: a common method used to determine the answer to the independent contractor vs. employee question. The Court has pointed out that at the certification stage, the form contract’s importance is not particularly in what it says, but in what degree of control it defines and whether it is uniform across the class.

Countless California workers are misclassified as independent contractors even though their employers retain control of their working conditions. If you are one of these California workers and you’d like to join with fellow workers to address the issue of misclassification claims, contact Blumenthal, Nordrehaug & Bhowmik. There’s precedence in the legal system that empowers you to raise your wage claim.