Alameda County, Calif. (January 10, 2020) – Today Justice Catalyst Law, Towards Justice, and Leonard Carder LLP filed suit against Amway, the largest multi-level-marketing company in the country, for failing to provide workers’ rights to its so-called “independent business owners.” The case alleges that Amway IBOs are not independent contractors under California law, but rather, employees entitled to the full suite of rights under the Labor Code, and that Amway failed to provide minimum wage, making IBOs pay for tools necessary to do their jobs, and failed to maintain time records. The case was filed in California state court claiming violations of California’s Private Attorney General Act.
IBOs provide vital work central to Amway’s business model, and they are entitled to the respect and dignity that all workers deserve. Amway has built a thriving billion-dollar business off of the hard work of its IBOs, but it pays most of those workers little to nothing. Worse, many IBOs actually lose money to Amway. Our action stands for the core principle that multi-level-marketing workers are employees who should be paid a minimum wage for their labor.
Read the news coverage here: Bloomberg
Read the complaint here.