Yelp Inc (YELP) Reviewers File A Lawsuit For Wages

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A group of Yelp Inc (NYSE:YELP) reviewers have filed a class action lawsuit against the review website claiming that they should be treated like employees.  The reviewers believe they should be paid.  Yelp told Circa that this is a “textbook example of a frivolous lawsuit.”

The lawsuit argues that Yelp’s business model and success is dependent on over 42 million submitted reviews.  The lawsuit also argues that Yelp technically employs those users and should pay cash including wages, damages, and reimbursements of expenditures.

The plaintiffs believe that volunteering to share their thoughts about a business makes them employees because Yelp only makes money if it has their reviews.

The lawsuit was filed earlier this month at the U.S. District Court for the Central District of California.  The plaintiffs also believe that Yelp misclassifies their “employees” as “volunteers, independent contractors, interns, contributors, freelance writers, reviewers, elites, or Yelpers.” The plaintiffs created a website to recruit users to become part of the lawsuit and asks people about how many reviews they have written and whether they have been declared one of Yelp’s “elite” users.  The website is YelpClassAction.info.

[Source: BusinessInsider]

Yelp Inc (YELP) Reviewers File A Lawsuit For Wages Comments

  1. Yelp Class Action says:

    Tens of thousands of non wage paid Yelp writers sue in class action to get their wages. http://yelpclassaction.info/panzerC.pdf

  2. Yelp Class Action says:

    Telephone the US District Court in New York City and tell the first judge who answers that this legal theory is “ridiculous”. We are confident that this lawsuit will get plaintiffs their wages. Workers cannot waive their rights to wages under the Fair Standards Labor Act. Federal judges understand this and this summer the entertainment industry learned that its so called “volunteer” “intern” workers must be paid (Glatt v. Fox Searchlight) and we are confident the US District Court of California will also permit these hereto now unpaid workers to obtain their wages under federal law.

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