Credico is a global customer acquisition company that specializes in face-to-face sales. The company has been facing legal challenges in recent years, including a class-action lawsuit alleging that Credico misclassified its workers as independent contractors and violated wage and hour laws.
The lawsuit was filed in 2015 by a group of former Credico workers who alleged that the company forced them to work long hours without overtime pay and denied them other benefits that employees are entitled to. The workers also claimed that Credico was their joint employer, along with the staffing agencies that hired them.
Credico denied the allegations, but the case went to trial in 2018. A jury found in favor of the workers and awarded them $3.5 million in damages. Credico appealed the verdict, but it was upheld by the U.S. Court of Appeals for the Ninth Circuit in 2021.
The Credico lawsuit is significant because it could have a broader impact on the way that gig economy companies classify their workers. If more courts find that companies like Credico are joint employers with their contractors, it could lead to more workers being eligible for employee benefits and protection.
FAQs
Q: What is a joint employer?
A: A joint employer is a company that exercises significant control over the work of a worker, even if the worker is employed by another company. When two companies are joint employers, they are both legally responsible for complying with employment laws, such as wage and hour laws.
Q: What are the benefits of being classified as an employee?
A: Employees are entitled to a number of benefits that independent contractors are not, such as minimum wage, overtime pay, Social Security and Medicare taxes, and unemployment insurance. Employees are also typically covered by their employer’s health insurance plan and other employee benefits.
Q: What are the implications of the Credico lawsuit for other gig economy companies?
A: The Credico lawsuit could have a broader impact on the way that gig economy companies classify their workers. If more courts find that companies like Credico are joint employers with their contractors, it could lead to more workers being eligible for employee benefits and protection.
Q: How can I find out if I am a joint employee?
A: If you are unsure whether you are a joint employee, you should consult with an experienced employment attorney. An attorney can help you assess your situation and determine whether you have a legal claim against your employer.
Q: What should I do if I believe that my employer is misclassifying me as an independent contractor?
A: If you believe that your employer is misclassifying you as an independent contractor, you should first try to resolve the issue directly with your employer. If you are unable to resolve the issue with your employer, you may want to file a complaint with the U.S. Department of Labor or your state’s labor department. You may also want to consult with an experienced employment attorney.
Conclusion
The Credico lawsuit is a significant development for gig economy workers. The case could have a broader impact on the way that gig economy companies classify their workers and the benefits that workers are entitled to. If you are a gig economy worker, you should be aware of your rights and take steps to protect yourself.
References
- Vasto v. Credico (USA), LLC: https://casetext.com/case/vasto-v-credico-usa-llc
- Misra v. Credico (USA), LLC: https://casetext.com/case/misra-v-credico-usa-llc
- Jinks v. Credico (U.S.) LLC: https://casetext.com/case/jinks-v-credico-us-llc
