A putative class action lawsuit filed against Kasamba, Inc. on September 9, 2024, in the Superior Court of California, Los Angeles County, alleges the online psychic platform misclassified its readers as independent contractors, potentially violating multiple California labor laws. The case, Simic v. Kasamba, Inc. (Case No.: 24STCV23254), represents a significant development for HR vendors monitoring labor classification trends across digital platforms.
The lawsuit claims Kasamba's alleged misclassification allowed the company to avoid various obligations under California's Labor Code and wage orders. According to the complaint, these violations include 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. The plaintiff represents a group of similarly situated readers including astrologers, life coaches, counseling readers, tarot advisors, and psychic advisors who provide services through Kasamba's platform.
Daniel S. Brome of Nichols Kaster, LLP, 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 highlights the central legal question of whether platform-based workers should be classified as employees rather than independent contractors. The lawsuit seeks to recover damages, penalties, and other statutorily-permitted relief for affected readers.
For HR vendors serving the talent management industry, this case presents important implications regarding worker classification standards. Kasamba, which has operated since 1999 and claims to have guided over 3 million people through psychic services via phone, live chat, and email, now faces legal scrutiny of its business model. The case is part of a broader trend of lawsuits challenging worker classification in the gig economy, following similar actions against ride-sharing companies, delivery services, and other platform-based businesses.
The legal team handling the case includes attorneys from Nichols Kaster, LLP and Working Solutions Law Firm, LLC. Nichols Kaster, PLLP 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." The firm's involvement suggests significant legal resources dedicated to this classification challenge.
This lawsuit could have far-reaching consequences for HR technology vendors and platforms operating in similar spaces. If successful, the case might establish precedents affecting how companies structure relationships with service providers across various digital platforms. The outcome may influence compliance requirements, operational models, and risk assessment for businesses utilizing independent contractor arrangements. As the case progresses, HR vendors should monitor developments that could reshape classification standards in the online services sector, potentially affecting talent management practices, compensation structures, and regulatory compliance across multiple industries.
