Kasamba Faces Class Action Lawsuit Over Worker Misclassification

In a significant development for the online psychic reading industry, a former spiritual advisor has initiated a putative class action lawsuit against Kasamba, Inc., a prominent platform for psychic and tarot readings. The lawsuit, filed on September 9, 2024, in the Superior Court of California, Los Angeles County, alleges that Kasamba misclassified its readers as independent contractors, potentially violating several California labor laws.

The plaintiff, representing a group of similarly situated readers, including astrologers, life coaches, counseling readers, tarot advisors, and psychic advisors, claims that Kasamba’s misclassification allowed the company to sidestep various obligations mandated by California’s Labor Code and wage orders. The Complaint outlines several alleged violations, including failure to pay minimum wages for all hours worked, non-reimbursement of business expenses, unlawful deductions from earned wages, inaccurate wage statements, failure to provide all wages owed upon termination, and non-compliance with pay timing requirements.

Kasamba, which has been operating since 1999, offers a range of online psychic services through phone, live chat, and email. The company claims to have guided over 3 million people in areas such as love, happiness, career success, and self-empowerment. However, this lawsuit challenges the company’s business model and treatment of its workforce.

Daniel S. Brome of Nichols Kaster, LLP, one of the attorneys representing the plaintiff, stated, ‘Kasamba requires its Readers to use its platform, and then charges them for it. We believe Kasamba’s misclassification of its workforce, and the violations that flow from that misclassification, are clear.’ This statement underscores the central issue of the case: whether Kasamba’s readers should be classified as employees rather than independent contractors.

The lawsuit seeks to recover damages, penalties, and other statutorily-permitted relief for the plaintiff and other affected readers. If successful, this case could have far-reaching implications for the gig economy, particularly in the psychic reading and online counseling sectors. It raises important questions about worker classification, rights, and the responsibilities of platforms that connect service providers with clients.

This legal action against Kasamba is part of a broader trend of lawsuits challenging the classification of workers in the gig economy. Similar cases have been brought against ride-sharing companies, delivery services, and other platform-based businesses. The outcome of this case could potentially influence how other companies in similar industries structure their relationships with service providers.

The lawsuit, titled Simic v. Kasamba, Inc. (Case No.: 24STCV23254), is being handled by a team of experienced attorneys from Nichols Kaster, LLP and Working Solutions Law Firm, LLC. Nichols Kaster, PLLP, known for its dedication to employee, consumer, and civil rights cases, has recently received recognition on the 2024 Best Law Firms List in Minneapolis for Litigation-Labor and Employment by U.S. News-Best Lawyers® ‘Best Law Firms.’

As this case progresses, it will be closely watched by legal experts, labor rights advocates, and businesses in the gig economy. The resolution of this lawsuit could potentially reshape the landscape of worker classification in the online psychic reading industry and beyond, highlighting the ongoing debate about worker rights in the digital age.

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