Kasamba Faces Class Action Lawsuit Over Worker Misclassification

In a significant development for the online psychic reading industry, a former spiritual advisor has filed a putative class action lawsuit against Kasamba, Inc., alleging that the company misclassified its readers as independent contractors rather than employees. The lawsuit, filed on September 9, 2024, in the Superior Court of California, Los Angeles County, could have far-reaching implications for how companies in the gig economy classify and compensate their workers.

The plaintiff, representing a potential class of readers including astrologers, life coaches, counseling readers, tarot advisors, and psychic advisors, claims that Kasamba's misclassification resulted in numerous violations of California's Labor Code and wage orders. These alleged violations include failure to pay minimum wages for all hours worked, failure to reimburse business expenses, unlawful deductions from earned wages, failure to provide accurate wage statements, and non-compliance with pay timing requirements.

Kasamba, a well-known platform offering online psychic readings, tarot readings, and astrology services since 1999, claims to have guided over 3 million people in various aspects of their lives. The company's business model, which allows clients to connect with readers via phone, live chat, and email, is now under scrutiny as the lawsuit challenges the fundamental structure of its workforce management.

The case brings to light the ongoing debate surrounding worker classification in the digital age, particularly in the gig economy. As more companies rely on independent contractors to provide services through online platforms, the line between contractor and employee has become increasingly blurred. This lawsuit against Kasamba could set a precedent for how similar companies in the psychic reading and broader online service industries operate.

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 argument of the case: that Kasamba exerts a level of control over its readers that is more consistent with an employer-employee relationship than that of an independent contractor arrangement.

The potential impact of this lawsuit extends beyond Kasamba and the psychic reading industry. If successful, it could encourage similar actions against other companies in the gig economy, potentially leading to significant changes in how these businesses operate and compensate their workers. For consumers, this could mean changes in service availability and pricing as companies adjust their business models to comply with labor laws.

Moreover, the case highlights the importance of proper worker classification in ensuring fair labor practices. Employees are entitled to various protections and benefits under labor laws, including minimum wage guarantees, overtime pay, and reimbursement for work-related expenses. Independent contractors, on the other hand, typically do not receive these benefits, making the distinction crucial for workers' rights and company obligations.

As the lawsuit progresses, it will be closely watched by legal experts, labor advocates, and businesses operating in the gig economy. The outcome could have significant implications for how companies structure their relationships with workers in the digital age, potentially reshaping the landscape of online service platforms and the gig economy as a whole.

The case, Simic v. Kasamba, Inc. (Case No.: 24STCV23254), is set to be a landmark in the ongoing debate over worker classification in the digital era. As the legal process unfolds, it will undoubtedly spark further discussions about the nature of work in the 21st century and the protections afforded to those who power the gig economy.