Lowe’s Settles Independent Contractor Misclassification Case

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Buying something at Lowe’s? Need help putting it where it belongs, hooking it up, making it work? “Get it installed by a Lowe’s professional,” Lowe’s advertises.

Over 4000 such “Lowe’s professionals” in California are members of the plaintiff class in an action alleging that Lowe’s misclassified its installers as independent contractors, rather than employees, thus depriving them of a variety of employee benefits, from workers compensation insurance coverage to 401(k) plan participation.

Without admitting liability, Lowe’s recently settled the case after mediation for a sum that could be as much as $6.5 million, depending on how many of the installers actually file claims and what damages they can prove (and assuming the proposed settlement is approved by the court). Plaintiffs’ attorneys fees may be up to 25% of that amount.

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