An Illinois court recently considered the classification of workers in Perez v. Super Maid, LLC, No. 11-C-07485 (N.D. Ill. July 14, 2014). In Perez, job applicants were required to sign a 3-year non-competition agreements. Independent contractors are generally allowed to market their skills to various companies for whom they provide service. Although the court did not cite the non-competes as the only factor, it considered that fact when it ultimately determined that the maids were employees, rather than independent contractors.
The Secretary of Labor filed the suit alleging Super Maid violated the Fair Labor Standards Act by failing to pay minimum wage, overtime, and keeping accurate records as required by law. In addition to requiring the maids to sign non-competes, the company also controls many, if not all, aspects of their services, including uniforms, supplies, tools, and vehicles. The court awarded back pay for unpaid minimum wage and overtime obligations of over $92,000 and liquidated damages of another $92,000, totaling over $184,000.