Love may be blind – but new lawsuit alleges clear employee misclassification issues

Employee misclassification can lead to legal issues for firms of all types and sizes. Even popular TV productions aren’t immune – as one new case demonstrates.

A contestant on Netflix’s hit reality show Love is Blind has brought a class action wage and hour suit against the streaming service, along with an associated casting company and a production company. Multiple news outlets have covered the lawsuit, which was filed in Los Angeles Superior Court, including Today.com and People magazine.

On the show, contestants get to know potential partners by having conversations in “pods,” or rooms where they can’t see each other’s faces. The idea is to fall in love with someone’s personality and prove whether love truly is blind.

As part of the competition, contestants live together in single-sex dormitory areas away from their friends and families, and they’re paid for their time. However, former contestant Jeremy Hartwell – who appeared on the show’s second season – said they were paid as independent contractors when they should’ve been treated as employees.

Here’s why: The reality show allegedly exerted more control over the contestants than is allowed under the law, and because of that, they couldn’t be considered independent contractors.

Examples of the control include taking away cast members’ personal electronic devices and closely monitoring their whereabouts. Allegedly, contestants were also denied food and water – and given alcohol to further manipulate their behavior to make for more interesting television.

And while contestants were paid for their participation, because the suit claims they should’ve been employees, the rate they were given fell below the federal minimum wage. Additionally, they didn’t receive overtime pay.

The lawsuit also alleges failure to follow a number of state and local labor laws, including not providing contestants with meal and rest periods, wage statements or prompt payment after termination.

There’s no word yet from Netflix or its co-defendants in the employee misclassification lawsuit. But since the streaming service has been plagued by subscriber loss recently, this costly legal battle couldn’t have come at a worse time.

DOL prioritizing employee misclassification

Companies big and small continue to struggle with similar issues when classifying workers, so it’s something you and Payroll should continue to watch for – especially employee misclassification is a significant priority for the Dept. of Labor (DOL) right now.

After the DOL withdrew a final rule from the Trump administration that created a multifactor “economic reality test” for distinguishing an employee from an independent contractor, a federal court ruled that the agency didn’t follow the correct protocols for vacating the rule and reinstated it. The DOL is currently appealing that decision.

In the meantime, the DOL has announced plans to develop a new proposed rule on employees and independent contractors during the summer of 2022. The agency’s already met with various stakeholders via forums, and it says it should release a notice of proposed rulemaking before fall 2022. We’ll keep you updated.