One of the biggest names and oldest companies in cosmetics is facing a putative employment class action suit from New Jersey residents. Mary Kay Cosmetics will see former employees in New Jersey courts. The class action suit alleges that employees were, “misclassified as independent contractors and unfairly made to purchase company merchandise as part of their employment.”
The lawsuit, failed on behalf of New Jersey Mary Kay cosmetics product sellers, “alleges the cosmetics company required employees to make non-negotiable payments under threat of termination, for Mary Kay cosmetics products including marketing materials, uniforms and retail merchandise. These actions are in violation of the New Jersey Wage Payment Law, the lawsuit states.”
The suit also alleges that Mary Kay cosmetics required employees to, “buy the minimum amounts of company or face expulsion, regardless of whether they had customers to purchase those products.” Furthermore, the lawsuit suggests that the lead Plaintiff, Ina M. Collins, along with thousands of others employed by Mary Kay cosmetics were misclassified as independent contractors instead of employees. “As a result of defendants’ conduct, the class members have endured significant economic damages, including all the money they needlessly spent on meeting quotas for product purchases, on overpaying for car leases, on paying for their own advertising, on having to pay taxes on overvalued gifts to them, and most importantly, on having to pay all of their Social Security taxes as if they were self-employed.”
The suit clearly states that Mary Kay cosmetics “forced class members to pay fixed, non-negotiable prices for numerous types of sales and marketing materials, like pamphlets and DVDs, while not allowing them from formulating and selecting their own marketing schemes.”
The plaintiffs in the Mary Kay cosmetics class action suit encountered significant financial damage as a result of their positions, and the courts in New Jersey will have to decide the extent of their claims. However, anyone undergoing legal trouble—from criminal cases, to negligence, and personal injury cases—may face significant financial hardship. Having a capable, well-tried lawyer on hand to work your case can help recover that financial loss and minimize any remaining damage. David P. Schroth has a proven track record of success trying cases in a range of practices. If you have questions or concerns about your own legal woes, contact David P. Schroth today to find a solution that works for you.