Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

Classification Carve-Out Sinks Certified California Class Action

July 5, 2022, 9:35 PM

A pre-foreclosure property preservation firm convinced the Ninth Circuit Tuesday to decertify the 156-person class in a suit alleging the company misclassified workers as independent contractors instead of employees and failed to pay overtime.

Field Asset Services Inc. might be able to take advantage of a new business-to-business exception to a worker classification test, so the lower court was wrong to certify a class and grant partial summary judgment in the workers’ favor, the US Court of Appeals for the Ninth Circuit said, reversing those lower court rulings and remanding the case for further proceedings.

FAS, now known as Xome ...