When a Job Title Does Not Match the Work: What the Campbell’s Misclassification Lawsuit Means for California Workers

If you have ever been labeled an independent contractor at work, you may have wondered what that actually means. For many workers, the label can feel like a technicality. In reality, it can shape everything from whether you are eligible for overtime to whether your employer reimburses you for job-related expenses.

A lawsuit filed in February by the San Diego City Attorney’s Office against The Campbell’s Company focuses on a familiar issue in today’s workforce. At its core, the case asks what happens when companies call workers independent contractors even though their day-to-day responsibilities resemble traditional employment.

The lawsuit against Campbell’s

The lawsuit alleges that Campbell’s, along with its subsidiaries Snyder’s-Lance and Pepperidge Farm, misclassified hundreds of workers in California. According to the complaint [The People of the State of California v. The Campbell’s Company / Case No. 26CU010230C] filed in San Diego Superior Court, the workers are responsible for delivering and stocking snack products directly to retail stores. The companies use a direct-store-delivery model, in which products are transported directly from manufacturers or suppliers to store shelves, bypassing a central distribution center.

The workers who carry out these tasks are referred to as “distributors.” The lawsuit claims that Campbell’s requires these distributors to sign agreements that label them as independent contractors, even though they are actually employees under California law.

Why does that matter? Because employees are entitled to a range of protections that independent contractors typically do not receive. These include minimum wage, overtime pay, paid sick leave and reimbursement for work-related expenses. The complaint argues that by classifying the workers as independent contractors, Campbell’s avoids providing these protections.

How does California determine worker classification?

At the center of the case is California’s ABC test, which is codified in Labor Code section 2775. The three-part test is used to determine whether a worker can legally be classified as an independent contractor. A worker is considered an employee unless the hiring entity can show that the worker is free from its control, does work outside the company’s usual scope of business and runs an independently established business in the same line of work.

If a company cannot fulfill all three parts of the ABC test, the worker is presumed to be an employee. The lawsuit claims that Campbell’s fails the test as it allegedly exercises significant control over how distributors perform their work. Some examples include defining delivery territories, determining which products can be delivered, setting commission rates and issuing guidelines on how distributors should interact with retailers.

Why does misclassification matter?

Misclassification can have real financial consequences for workers. When a worker is treated as an independent contractor instead of an employee, they may lose access to overtime pay, even if they regularly work long hours. They may have to cover their own business expenses, such as fuel or vehicle maintenance, without reimbursement. Workers may also miss out on paid sick leave and other benefits they are entitled to under California law.

Job titles and contracts do not always reflect the legal reality of a working relationship. Even if you signed an agreement calling you an independent contractor, that does not automatically make it valid under California law. If your employer controls how you do your job, relies on your work as a core part of its business and you do not operate a truly independent business, there is a chance you may be misclassified. Understanding your classification is important because it directly affects your rights and your pay.

Talk to an employment lawyer about your situation

If you believe you may have been misclassified or denied wages and benefits, it may be worth speaking with a San Francisco employment attorney. McCormack Law Firm helps workers understand their rights and take action when employers fail to follow California labor laws. If you have questions about your classification or believe something is not adding up, contact us today at (415) 925-5161 for a free consultation to discuss your options.

Disclaimer: This article is for information purposes only. McCormack Law Firm is not involved in this case.