Amway, Welcome to the Gig Economy: You’re Being Sued Over Pay

Amway Corp. has long faced controversy over its multi-level marketing business model. Now, the family-owned direct sales giant is accused in a lawsuit of ripping off the people who peddle its products by failing to pay them minimum wage.

It’s part of a wave of cases in California over who counts as an employee, a battle that’s heated up with a new state law that makes it harder for companies to classify workers as independent contractors to avoid giving them better pay and benefits.

Amway relies on what it calls “independent business owners,” who pay fees and buy its merchandise ...