Following nearly two decades of litigation, Jan-Pro Franchising International Inc. and the janitors, who claimed they were incorrectly classified as contractors rather than employees, secured final approval for a $30 million settlement last Thursday.
This case centred around allegations that the international janitorial firm had avoided complying with various pay laws by wrongfully categorising their employees as independent contractors.
While the settlement fund is slightly over half of what the workers could have potentially retrieved in a damages trial, it is considered an “excellent result”. This takes into account the extensive length of litigation the case involved, including appearances in several appellate courts. The US District Court for the Northern District of California confirmed this sentiment.
Two significant factors that contributed to the settlement were the adoption of the California ABC test and the subsequent altered worker conditions. Additionally, the result means that the attorneys involved, Lichten & Liss-Riordan will receive $9 million in attorneys’ fees.
For more on this case, you can read the original article here.