HUNTINGTON, W.Va. (AP) — A West Virginia woman is suing a so-called multi-level marketing company that sells women’s clothing, accusing it of improperly compensating workers.
The Charleston Gazette-Mail reported Tuesday that Amy Williams is accusing Matilda Jane Clothing and its parent companies of violating the Fair Labor Standards Act.
The lawsuit says the company’s “restrictive” policies prevented Williams from earning a minimum wage. Williams says she worked full-time for Matilda Jane for six months and spent $8,000 purchasing required supplies to earn just $1,000.
She’s demanding that the company classify and compensate salespeople as full-time employees and not independent contractors paid just on commission.
The Federal Trade Commission describes multilevel marketing companies as those that sell products through person-to-person sales and seller recruitment.
The newspaper says the company hasn’t commented.