On 29 June 2023, the US Department of Labor filed a public lawsuit against Arise Virtual Solutions in the Southern District Court of Florida for potential worker misclassification. The department alleges that Arise enticed workers with promises of working independently and earning income through customer support services. However, investigations determined that these workers lacked genuine autonomy, were bound by Arise's strict scheduling policies, and were required to purchase their own equipment to provide services and generate income for Arise's clients. The department's complaint asserts that by misclassifying these workers, Arise violated the Fair Labor Standards Act. This federal law mandates payment at or above the minimum wage and overtime rates of one-and-a-half times the regular rate for hours worked over 40 in a workweek.
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