Kasamba Faces Class Action Lawsuit Over Alleged Worker Misclassification

In a significant development for the online psychic reading industry, a former spiritual advisor has initiated a class action lawsuit against Kasamba, Inc., a prominent platform for psychic and tarot readings. Filed on September 9, 2024, in the Superior Court of California, Los Angeles County, the lawsuit alleges that Kasamba misclassified its readers as independent contractors rather than employees, potentially violating several California labor laws.

The plaintiff, representing a class of similarly situated readers, including astrologers, life coaches, counseling readers, tarot advisors, and psychic advisors, claims that Kasamba's classification practices have led to multiple labor law violations. These alleged infractions include failure to pay minimum wages for all hours worked, neglecting to reimburse business expenses, making unlawful deductions from earned wages, failing to provide accurate wage statements, not paying all wages owed upon termination, and non-compliance with pay timing requirements.

This legal action against Kasamba, which has reportedly guided over 3 million people since 1999, could have far-reaching implications for the gig economy, particularly in the spiritual and psychic services sector. The case, Simic v. Kasamba, Inc. (Case No.: 24STCV23254), seeks to recover damages, penalties, and other statutorily-permitted relief for the plaintiff and other affected readers.

Daniel S. Brome of Nichols Kaster, LLP, representing the plaintiff, stated, "Kasamba requires its Readers to use its platform, and then charges them for it. We believe Kasamba's misclassification of its workforce, and the violations that flow from that misclassification, are clear." This statement underscores the central argument of the case – that Kasamba exercises sufficient control over its readers to classify them as employees rather than independent contractors.

The lawsuit brings to the forefront the ongoing debate about worker classification in the digital age, where the line between employee and independent contractor has become increasingly blurred. As more services move online and adopt platform-based models, cases like this could set important precedents for how workers in various industries are classified and compensated.

For the psychic reading industry, which has seen significant growth in online platforms, this lawsuit could prompt a reevaluation of business models and worker relationships. If successful, it may lead to substantial changes in how these platforms operate, potentially affecting service costs, reader compensation, and the overall structure of the industry.

The case also highlights the broader implications for California's gig economy legislation, which has been at the forefront of efforts to provide greater protections for workers in non-traditional employment arrangements. As courts continue to grapple with these issues, the outcome of this lawsuit could influence future legislation and court decisions regarding worker classification across various sectors.

As the case progresses, it will be closely watched by legal experts, labor rights advocates, and businesses operating in the gig economy. The resolution of this lawsuit could have significant ramifications not only for Kasamba and its readers but also for similar platforms and workers in California and potentially beyond, as other states look to California's approach in addressing the challenges of the evolving workforce landscape.