Last week, Zakay Law Group filed a California class action complaint against Zirx and Oollooa, Inc. The San Francisco class action seeks damages on behalf of the companies’ drivers. The complaint claims the drivers are employees, misclassified as independent contractors by the companies.
In 2015, Zirx settled a similar class action. Back then, Zirx offered on-demand valet services. Two years later, Zirx changed its name to Stratim, Inc. At the same time, the company started offering different services. Today, Stratim, Inc. offers car fleet management. The company’s drivers pick up, drop off, and service cars for Stratim’s customers. Stratim’s customers include companies like BMW (DriveNow), General Motors, (Maven), Ford (Chariot) and Toyota.
Using Stratim, a company like Toyota can request a gas fill-up for one of its vehicles. One of Stratim’s drivers will then accept the assignment and perform the service for Toyota. The driver will pick up the vehicle, fill it up with gas, and drive it back for a drop-off.
The California wage and hour class action alleges that the drivers are employees under the company’s control. The complaint contends that Zirx/Stratim treat their drivers as independent contractors, in violation of California labor laws. As a result, the drivers do not receive overtime wages. The drivers also do not receive meal breaks or rest breaks. Furthermore, the company does not reimburse drivers for cell phone and fuel usage. Instead, Zirx/Stratim pays the drivers a flat fee per assignment. Zirx/Stratim also manage to avoid paying certain taxes as a result.
Recently, Zirx/Stratim was purchased by KAR Auction Services. KAR Auction Services is a car re-marketing company.
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For more information about this legal action, please contact the law firm of Zakay Law Group. You may also review a copy of the Complaint by clicking here.