Illinois Attorney General Kwame Raoul’s office has reached a $600,000 settlement with Wonolo Inc., a staffing company accused of misclassifying workers who found temporary jobs through its online platform. The agreement addresses claims that Wonolo treated many workers as independent contractors instead of employees and failed to pay them properly.
The investigation found that workers were paid a straight hourly rate but did not receive overtime pay at the required increased rate for hours worked beyond 40 in a week. Some employees were even paid below Illinois’ minimum wage. Additionally, workers whose jobs were canceled did not get the required four-hour minimum payment. Wonolo also did not register as a day and temporary labor service provider with the Illinois Department of Labor, which is a legal requirement in the state.
Illinois law mandates that employees receive at least the state minimum wage and overtime pay at 1.5 times their normal rate after 40 hours in a week. The law also requires labor service companies to pay workers for four hours when assigned jobs are canceled and no new work is offered.
Thanks to this settlement, more than 3,320 workers who were wrongly classified and underpaid will now recover the wages they missed out on. The case sheds light on the challenges temporary workers often face and underscores the importance of fair labor practices in the growing gig economy.