Smoothstack is a company that has, in recent months, come under the spotlight for a number of legal issues. Specifically between March and May 2019, Smoothstack, a company that specializes in technology training and employment services, has been involved in some form of legal incident. The Smoothstack lawsuit has aroused considerable public concern regarding the company’s behavior and, in particular, how it treats its workforce. It has created a buzz within the tech industry for wage discrimination and unlawful practices. These scenarios have come under scrutiny to the extent that they resulted in a class-action suit.
The Details of the Alleged Smoothstack Lawsuit
In the Smoothstack legal case, the primary focus involves claims that the company violated the law in relation to wages. Smoothstack is a business entity that trains people and then finds them jobs in the tech sector. Its job is to avail employment and other career-related opportunities. However, in the lawsuit, the company’s wage policies and procedures may have been a violation of federal employment laws.
The plaintiffs in this case claim that Smoothstack paid employees small wages. Moreover, it did not address the pay rates as required by the law. Their class-action lawsuit revolves around the allegation that the company did not adequately compensate workers during their probationary period. Further, they entered into contracts of compulsory assignment, which were potentially abusive. The lawsuit has accused Smoothstack of employing strategies meant to cap the wages of employees. It further states exploiting employees seeking new job opportunities in a competitive market.
Allegations in the Lawsuit
Unpaid Wages
There are many accusations made by Smoothstack in the lawsuit. But, one of the major ones is that the company did not compensate the employees. Specifically, for time spent in forced training. Lack of Wages laws also states that employees were often left learning for weeks or even months without being paid fairly. Despite the plaintiffs’ claims that this period was necessary for them to work in the future, Smoothstack had allegedly deemed it voluntary. However, the lawsuit disputes this classification claiming that the training was not voluntary but rather compulsory and integral to the performance of the duties of the employees. Consequently, the lawsuit alleges that workers should receive wages for time worked based on federal and state employment laws.
Unlawful Employment Contracts
Another important aspect of the legal case is that before beginning their training with Smoothstack, workers have to sign certain agreements. As well stated by the legal points, such contracts contained ridiculous restrictive covenants. They also reduced employee liberty and proposed considerable financial impacts. For example, the plaintiffs claim that the contracts included restrictive covenants. This was in the form of non-compete clauses. These precluded the plaintiffs from simply seeking other jobs during and after their time with the company.
Misclassification of Employees
Another cause of action highlighted by Smoothstack in the lawsuit is the violation of the employer’s labor laws through misclassifying some workers as independent contractors rather than employees. For its part, Smoothstack misclassified these workers in a way that enabled the company to dodge required benefits and wages under the law, the plaintiffs say. The lawsuit further contends the Very Smoothstaff’s business model of classifying its workers as contractors allowed it to offload several of the expenses like tax and training on the workers. The plaintiffs argued that they were misclassified and as such, the company engaged in unlawful wage discrimination.
Violation of Labor Laws
The complaint further states that the wage-related actions of Smoothstack violated the FLSA and various state labor laws. FLSA provides guidelines regarding the wage and overtime that an employer. It is supposed to adhere to and the lawsuit alleges that Smoothstack did not. For instance, the plaintiffs claimed that the company offered them lower wages than the minimum wage rate. It also denied them their wages for all the hours worked including overtime after their training period. The lawsuit also enlists the state labor laws Smoothstack reportedly violated and includes the laws of the classification of employees and wage laws.
End Note
The Smoothstack case is a lengthy litigation that makes it clear that workers face a lot of obstacles in the technology sector, especially if they are beginners who have received training through the program. The acts of alleged wage theft, non-competition agreements, and labor abuse have sparked discussion on the ethical treatment of workers in the technology industry. Since the case proceeds, it stays relevant to observe how the issues are dealt with in the court as well as the ramifications of the lawsuit to the IT sector.
FAQs
1. What is the Smoothstack lawsuit about?
In the Smoothstack case, the claim is that the company violated the law by delaying payment of wages during training and tying workers to burdensome contracts.
2. Who is involved in the Smoothstack lawsuit?
The case is class-action where several plaintiffs were people who previously worked for Smoothstack or trained to work for the company. They are now taking the company to court based on wage-related violations as well as issues touching on contracts.
3. What are the main allegations in the Smoothstack lawsuit?
The main allegations include unpaid wages during mandatory training, unlawful employment contracts with restrictive covenants, and misclassification of employees as independent contractors.
4. Has Smoothstack responded to the allegations?
Yes, Smoothstack has denied the allegations, stating that its training and employment practices comply with all labor laws. The company has also filed motions to dismiss certain claims in the lawsuit.
5. What could be the outcome of the Smoothstack lawsuit?
The outcome is still uncertain as the case is ongoing. However, if the plaintiffs are successful, it could lead to changes in how tech companies structure their training programs and compensation practices.