Class Action Lawsuit Challenges Kasamba's Worker Classification Practices

A putative class action lawsuit filed against Kasamba, Inc., a leading online platform for psychic and tarot readings, alleges the company misclassified its readers as independent contractors, potentially breaching California labor laws. The lawsuit, initiated by a former spiritual advisor on behalf of similarly situated readers, claims this misclassification enabled Kasamba to evade various legal obligations, including minimum wage payments, reimbursement of business expenses, and accurate wage statements.

The case, Simic v. Kasamba, Inc. (Case No.: 24STCV23254), filed in the Superior Court of California, Los Angeles County, could have significant implications for the gig economy, particularly in sectors like online psychic readings and counseling. Daniel S. Brome of Nichols Kaster, LLP, representing the plaintiff, criticized Kasamba's business model, stating the company charges readers for using its platform while denying them employee benefits.

Kasamba, operational since 1999, boasts over 3 million users seeking guidance on love, career, and personal growth. However, the lawsuit challenges the ethical and legal foundations of its workforce management, seeking damages and penalties for affected readers. This legal action is part of a wider scrutiny of gig economy businesses, with similar cases targeting ride-sharing and delivery services.

The outcome of this lawsuit could influence worker classification standards across the digital platform industry, emphasizing the ongoing debate over labor rights in the digital age. Legal experts and labor advocates are closely monitoring the case, which may prompt companies to reevaluate their contractor relationships to comply with labor laws.