The complaint against Redfin and 100 other unnamed “Does” filed in California’s Alameda County Superior Court by lawyers on behalf of former Redfin field agent The suit seeks to represent all Redfin field agents in California who worked for the firm in the four years before the suit was filed.
“As a matter of company policy, practice and procedure, Redfin has unlawfully, unfairly, and/or deceptively classified every California Class Member as ‘independent contractors’ in order to unlawfully avoid compliance with all applicable and federal state laws that require payment for all hours at work, business expenses, and the employer’s share of payroll taxes and mandatory insurance,” the complaint said.
The complaint also alleged unfair competition: “Defendant cheated the competition by paying the California Class less than the amount competitors paid who complied with the law and cheated the California Class by not paying them in accordance with California law,” the filing said.
Redfin has yet to file a response and did not respond to a request for comment.
Penalties for “willful misclassification of employees” range from $5,000 to $15,000 per violation, unless the court finds a pattern of violations, in which case the penalty could go up to $25,000 for each violation. The suit also asks for an unspecified amount of damages, seeks to recover wages on behalf of all of Redfin’s California field agents, and asks for a jury trial.
According to the complaint, field agents were paid a $100 flat rate to conduct home inspections for Redfin and a $125 flat rate to perform an open house showing for Redfin. Field agents received a flat rate of $25 if they showed up for an appointment that was canceled.
The complaint alleges that, other than these flat rates for each specific job performed, agents were not compensated for all of the tasks required of them, which included driving to homes to conduct home inspections or home tours, preparing for and attending open house showings, attending various team meetings, and drafting “agent insights” describing homes for sale.
Moreover, the complaint alleges that “Redfin had the authority to exercise complete control over the work performed and the manner and means in which the work was performed. Redfin provided the customers and Redfin provided the instructions as to how to perform inspections and show the homes listed with Redfin.”
Redfin also did not allow field agents to market and sell their own real estate, the complaint said.
Whether an employer has control or the right to control the worker both as to the work done and the manner and means in which it is performed is the most significant factor in determining whether a worker is an employee or an independent contractor, according to California’s Department of Industrial Relations.
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