Luxe Valet Inc. being sued for allegedly misclassifying workers.

Class action lawsuit is a wake-up call for any other valet parking company treating their workers as independent contractors.

I feel pity for the well funded on-demand valet parking company Luxe and their investors. Though I certainly was puzzled when I discovered their workers were treated as 1099 independent contractors. And it raised my concern about there apparently being no workers compensation insurance coverage for the people who are doing their front-line work. (Valet workers do get injured on the job. It happens.)

The lead plaintiff in the case was on the job for no more than 2 months. The 34 page complaint alleges the company cheated the plaintiff out of overtime pay, did not provide meal and rest breaks, and other things.

The law firm is Blumenthal, Nordrehaug & Bhowmik, which specializes in employment litigation in California. This is a serious legal attack on this company. 

For any company that is treating their workers as independent contractors, I recommend you read this complaint.

June 17, 2015

Article: California labor commission rules Uber drivers are employees, which could clobber the $50 billion company

Uber suffered a legal defeat with one plaintiff. The ruling shows that using the 1099 model is risky in California.

Article: FedEx Settles Independent Contractor Mislabeling Case For $228 Million

This Fedex settlement also just hit the news. Hmm... Considering workers to be independent contractors is getting riskier.

Article: Contractor or Employee? Silicon Valley's Branding Dilemma.

UPDATE: July 29, 2015

According to the Wall Street Journal, Luxe will convert its independent contractor valet workers to employees.