Kasamba Faces Class Action Lawsuit Over Worker Misclassification in California

In a significant development for the online psychic reading industry and gig economy at large, a former spiritual advisor has filed a putative class action lawsuit against Kasamba, Inc. in California. The lawsuit, filed on September 9, 2024, alleges that Kasamba misclassified its readers, including astrologers, life coaches, and psychic advisors, as independent contractors rather than employees.

The plaintiff claims that this misclassification allowed Kasamba to avoid various obligations under California's Labor Code and wage orders. Specific allegations include failure to pay minimum wages for all hours worked, non-reimbursement of business expenses, unlawful deductions from earned wages, inaccurate wage statements, and non-compliance with pay timing requirements.

Kasamba, a platform offering online psychic readings since 1999, claims to have guided over 3 million people in areas such as love, career success, and self-empowerment. The company's business model, which requires readers to use its platform while charging them for access, is now under legal scrutiny.

This case could have far-reaching implications for the gig economy, particularly in California where labor laws are often more stringent. If successful, it may force Kasamba and similar companies to reclassify their workers as employees, potentially leading to increased costs and changes in business models. For workers in the psychic reading industry, a favorable outcome could result in improved labor protections and benefits.

The lawsuit seeks to recover damages, penalties, and other statutorily-permitted relief for the plaintiff and other similarly situated readers. As a class action, its outcome could affect a significant number of workers in the online psychic reading industry.

This case highlights the ongoing debate surrounding worker classification in the digital age, where the line between independent contractors and employees is increasingly blurred. It also underscores the importance of compliance with state labor laws, even for companies operating primarily in the digital space.

As the legal proceedings unfold, this case will likely be closely watched by both gig economy companies and workers' rights advocates, potentially setting precedents for how digital platforms classify and compensate their workforce in California and beyond.