CIS Companies Collectively Sued Over ‘Invalid Pay System’

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Two former employees have filed suit against CIS Services, LLC; CIS Claim Services, LLC; CIS Group of Companies, LLC; CIS Group, LLC; and one individual owner claiming the defendants collectively failed to pay the plaintiffs lawful overtime wages. 

The plaintiffs performed insurance adjusting services for the defendants from May 2013 through March 2018 and December 2012 through September 2017, respectively, the suit says. They allege that the defendants “flip-flopped” their statuses between employees and independent contractors, meaning they weren’t always receiving the benefits afforded by the Fair Labor Standards Act (FLSA). The lawsuit says that the plaintiffs were misclassified when they worked as independent contractors since the two worked full time exclusively for the defendants and were subject to the same policies and rules as employees. As such, the suit argues that the plaintiffs should have been classified as employees and were lawfully entitled to FLSA protections, including the time-and-a-half overtime pay that they were allegedly deprived of.

The plaintiffs claim that despite working 10 to 30 hours of overtime per week, they were paid a “non-guaranteed (and invalid) daily rate of pay” that did not guarantee a minimum amount of pay per week or include premium overtime wages. 

“…[W]hen questioned about Defendants’ invalid pay system, [an individual defendant] announced that the Similarly Situated Adjusters should just ‘get in line and sue me. I’ve been sued before’ or words to that effect,” the complaint reads.