Migliaccio & Rathod LLP is investigating multilevel marketing (MLM) companies that misclassify their salesforce as independent contractors, depriving them of wages, reimbursements, and MLM workers protections they may be legally entitled to—particularly under California law.

MLM Workers Treated Like Employees—but Without the Pay or Protections

In the class action lawsuit Kreifels v. Monat Global Corp., filed in the U.S. District Court for the Central District of California, plaintiffs allege that Monat Global, a company that sells haircare, skincare, and wellness products through a network of “Market Partners,” misclassified them and thousands of others as independent contractors rather than employees.

Despite this classification, Monat allegedly:

Controlled how Market Partners sold and marketed products, including rules on social media usage;
Required product pack purchases and annual fees to maintain sales eligibility;
Prohibited sales for other companies, limiting outside work;
Failed to pay minimum wage or overtime;
Denied meal and rest breaks, and
Required workers to pay out of pocket for business expenses like internet, phones, and promotional supplies—with no reimbursement.

Why Misclassification of MLM Workers Matters

Under California’s strict “ABC test” for determining worker classification, workers must be treated as employees unless all three criteria for independent contractor status are met. Plaintiffs allege that Monat’s policies and degree of control fail that test, and that workers were entitled to:

Minimum wage and overtime pay
Meal and rest breaks
Expense reimbursement
Accurate wage statements and payroll records

These are basic rights guaranteed to employees, but often denied to independent contractors.

Unpaid Wages, No Protections, and High Out-of-Pocket Costs

MLM workers like Monat Market Partners may have:

Worked long hours without any guaranteed compensation;
Spent hundreds or thousands of dollars on products, tools, and marketing;
Received no legal protections, even though they performed core business functions for the company.

Were You a Market Partner or MLM Worker in California?

You may have a claim if:

You worked for Monat (or a similar MLM) in California, and
Were classified as an independent contractor, and
The company controlled your marketing/sales practices, and
You were not paid wages, overtime, or reimbursed for expenses despite performing essential work.

These practices may violate California labor laws and entitle you to back pay, penalties, reimbursements, and other compensation.

Contact Us

If you worked as a Market Partner or similar MLM contractor and believe you were misclassified, you may be owed compensation for unpaid wages and expenses.

To learn more or tell us your story, please complete the confidential questionnaire below. If you have any further questions, feel free to email us at [email protected] or call us at (202) 470-3520.