Summary
- Homeaglow is accused of misclassifying workers as independent contractors
- Lawsuits demand unpaid wages, overtime, and expense reimbursements
Homeaglow (also known as Dazzling Cleaning) is a company offering low-cost residential cleaning services throughout the U.S. While Homeaglow claims its platform connects customers with independent cleaning professionals, recently filed Homeaglow lawsuits accuse the company of taking its workers to the cleaners.
What Are the Claims in the Homeaglow Lawsuits?
Several workers have filed lawsuits alleging Homeaglow's compensation policies violate their rights under the California Labor Code. The lawsuits ask for compensation for unpaid wages and reimbursement for cleaning supplies and other expenses. These class action lawsuits allow the named plaintiffs to file suit on behalf of all similarly affected employees.
Homeaglow claims the cleaners it sends to its clients are independent contractors, not employees. Employees have various rights protected by state and federal laws, including minimum wage and overtime requirements, workers' compensation coverage and whistleblower protections. Employers must also pay a portion of its employees' federal income taxes. These laws do not apply to independent contractors.
How Do You Know if You're an Employee or an Independent Contractor?
Classifying workers as independent contractors allows a company to pay them less than minimum wage and avoid paying for workers' compensation insurance, taxes, health insurance and other benefits. Workers aren't compensated for overtime, even if they work long hours. They can't pursue claims for workplace harassment, retaliation or mistreatment, and they aren't protected if they are fired for reporting illegal activity or becoming seriously ill.
Whether a worker is an employee or independent contractor isn't a matter of employer or worker preference. Federal and state laws establish objective standards for making this determination correctly. Unless a worker meets these criteria, their employer must classify them as an employee.
The current federal guidelines are explained in the DOL publication Employee or Independent Contractor Classification Under the Fair Labor Standards Act (FLSA). A worker is not an independent contractor if they are, as a matter of economic reality, economically dependent on an employer for work. The DOL examines six factors to determine a worker's classification for federal tax purposes, government benefits and eligibility for protection under federal laws.
In 2020, California implemented an "ABC test" to properly classify workers for the state Labor Code, the Unemployment Insurance Code and the Industrial Welfare Commission (IWC) wage orders. A California worker is considered an employee and not an independent contractor unless all three of the following conditions are true:
- The business doesn't control and direct the individual's performance of their work, both under the terms of their contract and in actual practice.
- The worker performs work that is outside the usual course of the hiring entity’s business.
- The worker is regularly engaged in an independently established trade, occupation or business of the same nature as that involved in the work performed.
The U.S. Department of Labor (DOL), the IRS and many state governments have begun to crack down on worker misclassification. Employers that misclassify employees face fines and penalties that can add up quickly. Ending misclassification helps ensure laws designed to protect workers apply to as many of the more than 161 million working Americans as possible.
California Law Offers Robust Worker Protections
State laws governing fair employment and workplace safety vary widely and are often more protective for employees than the federal minimum standards. Where an individual performs their job duties determines which state's laws apply. National companies must comply with a patchwork of different requirements and may have to alter their policies for employees in particular states.
Workers in California enjoy many protections under state labor regulations. State law sets a high minimum hourly wage and requires overtime pay, rest breaks, meal breaks and paid sick leave for most employees. It also requires employers to reimburse workers for expenses necessary to do their jobs and protects workers from liability for cash shortages, breakages or damage to equipment.
What Are the Homeaglow Class Action Lawsuit Claims?
Homeaglow claims it simply connects its customers with reliable, independent professionals. It does not reimburse its cleaners for mileage, overtime, cleaning supplies and other expenses, does not pay wages compliant with California's minimum requirements and does not provide meal or rest breaks. If its workers are correctly classified as independent contractors, Homeaglow's policies are completely legal.
The Homeaglow class action lawsuits tell a different story about how the company operates. Homeaglow provides cleaners with a detailed list of what's included in a "standard cleaning" and exerts significant control over how the cleaners do their jobs. Workers complain the company micromanages their communications and relationships with clients.
A previous Homeaglow class action was dismissed in August 2023. The company successfully argued that the mandatory arbitration provision in the agreement signed by each cleaner prevented them from suing the company individually or as a group. It filed a similar motion in the current case. Plaintiffs will face an uphill battle to justify this court reaching a different decision based on substantially similar facts.
