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CHICAGO, Ill. (WCIA) — Attorney General Kwame Raoul reached a settlement with Veryable Inc. on Thursday, resolving allegations the company misclassified workers.
The $320,000 settlement resolved the allegations that the workers who were placed in temporary labor positions via the company’s online platform were misclassified. Raoul’s office carried out an investigation that revealed workers placed through the online platform were misclassified as independent contractors and paid at a regular hourly rate of pay without receiving any premiums for overtime hours worked.
Additionally, these workers were not paid for a four-hour minimum when they were placed in jobs that ended up being canceled. Veryable also failed to ensure that workers were employed by a registered day and temporary labor service provider.
“Day and temporary laborers are especially vulnerable to unlawful labor practices that rob them of crucial protections and pay, including a four-hour minimum if they are placed in a job that is canceled when they are not reassigned,” Raoul said.
According to the press release, “the Illinois Minimum Wage Law requires employees to be paid an overtime premium of 150% of their regular hourly wages for each hour worked over 40 in a single workweek.”
Additionally, the Illinois Day and Temporary Labor Services Act requires companies providing day and temporary labor services to register with the Illinois Department of Labor and to pay workers for at least four hours of work when their temporary job placements are cancelled, and they aren’t reassigned.
This settlement is allowing over 870 eligible employees to recover overtime wages that Veryable was supposed to have paid them years ago. On top of this, the settlement also makes sure that future workers who receive assignments through the company’s platform are classified as employees and receive the protection afforded by the Illinois Day and Temporary Labor Services Act.
Raoul’s Workplace Rights Bureau protects and advances the employment rights of all state residents. This specifically focuses on Illinois’ most vulnerable residents and immigrant populations.
The bureau also litigates and investigates cases that involve serious wage law violations and other significant employment practices. It monitors and proposes legislation concerning employment and labor issues.
“My office will continue fighting to protect the rights of all Illinois workers, which also levels the playing field for businesses already in compliance with Illinois employment laws,” Raoul said.
Raoul encourages workers who have concerns about wage and hour violations to call the Workplace Rights Hotline at 844-740-5076 or visit the office’s website to file a complaint online.