Lowe's to Pay Up to $6.5 Million to Settle Misclassification Lawsuit

Wednesday, June 11, 2014
Ronald Shepard filed a class action lawsuit against Lowe's Home Center LLC in June 2012. He alleged that he was hired to perform installations of garage doors at a California Lowe’s store. He claimed that Lowe’s classified him as an independent contractor instead of an employee even though he was required to wear Lowe’s shirts and to inform customers that he was an employee of Lowe’s.  Despite requiring him and others to present themselves as employees of Lowe's, the company failed to offer benefits such as health insurance, worker’s compensation insurance, paid sick leave, employee discounts and a matching 401(k) savings plan.

When determining whether a worker should be classified as an independent contractor or an employee of a company, California law requires that numerous factors must be taken into consideration.  Employers sometimes misclassify their workers to avoid complying with wage and hour laws as well as providing benefits to these employees.  Lowe’s has agreed to pay up to $6.5 million to resolve a class action lawsuit alleging the retailer misclassified home installation workers as independent contractors.  The company will also pay 25% of the sum as attorneys' fees.
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