LGCY Power Lawsuit: Misclassification of Door-to-Door Salespeople
In 2023, LGCY Power, a solar energy company, reached a $3.82 million settlement to resolve a class action lawsuit alleging that it misclassified its door-to-door salespeople as independent contractors instead of employees. This misclassification resulted in the salespeople being denied various employment benefits, including overtime pay, minimum wage pay, and meal and rest breaks.
The lawsuit was filed by Robert Green, Anthony Ruiz, John Tanner, and 50 anonymous individuals who worked as door-to-door salespeople for LGCY Power between May 23, 2015, and August 5, 2022. The plaintiffs alleged that LGCY Power controlled their work schedules, provided them with sales leads, and required them to wear company uniforms. They also alleged that they were not paid for training time or non-sales work, and that they were not reimbursed for business expenses.
LGCY Power denied the allegations, but agreed to settle the lawsuit for $3.82 million. The settlement will provide class members with back pay, damages, and attorneys’ fees.
Key Takeaways from the LGCY Power Lawsuit
The LGCY Power lawsuit highlights the importance of properly classifying workers as employees or independent contractors. Misclassification can deprive workers of important employment benefits and protections. Employers should carefully consider the factors used to determine worker classification to ensure compliance with labor laws.
Resources for Workers and Employers
If you are a worker who believes you have been misclassified as an independent contractor, you can contact the following resources for assistance:
- The U.S. Department of Labor
- Your state’s labor department
- An attorney specializing in employment law
If you are an employer, you can consult with an attorney or other expert to ensure that you are properly classifying your workers. You can also find helpful information on the websites of the U.S. Department of Labor and your state’s labor department.
