Politician claims firm denying hundreds of employees 'full suite of employment and social safety net benefits and labor protections they are entitled to'

A human resources firm is denying a senator’s allegation that it misclassified workers.

In a letter sent to California Secretary of Labor Stewart Knox in late June, Senator Steve Padilla (D-San Diego) requested that the California Labor and Workforce Development Agency investigate the business practices of San Francisco-based Human Resources company Deel.

The senator claimed that Deel hired hundreds of employees, but classified them as independent contractors, “effectively denying them the full suite of employment and social safety net benefits and labor protections they are entitled to”. These entitlements include healthcare, retirement, unemployment insurance, worker’s compensation, collective bargaining, and overtime pay, he said.

Deel also appears to be advising clients to misclassify employees and evade taxes in California, said Padilla.

The CEO is encouraging companies to leverage “the different ways of employing someone or assigning them as an independent contractor… and therefore don't put as much tax liability into your company,” he said.

“No company is above the law. Deel has been openly flaunting their violation of California labor laws, intentionally misclassifying their employees as independent contractors and denying them critical benefits,” said Padilla. “California is clear on this issue; employees are...

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