Illinois Attorney General Kwame Raoul announced his office reached a $600,000 settlement with staffing solution agency Wonolo Inc., resolving allegations the company misclassified workers who were placed in temporary labor positions via the company’s online platform.
An investigation Raoul’s office conducted revealed workers placed through Wonolo’s online platform were misclassified as independent contractors and paid a regular hourly rate without premiums for overtime hours worked.
Some workers did not receive Illinois’ minimum wage. Workers were also not paid a mandatory four-hour minimum when they were placed in jobs that ended up being canceled. In addition, Wonolo failed to ensure that workers were employed by a registered day and temporary labor service provider.
The Illinois Minimum Wage Law requires employees to be paid Illinois’ minimum wage and an overtime premium of 150% of their regular hourly wages for each hour worked over 40 in a single workweek.
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 canceled and they are not reassigned.
Attorney General Raoul’s settlement allows more than 3,320 eligible employees to recover unpaid wages that Wonolo should have paid them years ago.
Source: Office of Illinois Attorney General
Topics Illinois
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