Minnesota Secures $300K Settlement with Florida Firm Over Worker Misclassification

A Florida-based gig work company, Arise Virtual Solutions, Inc., has agreed to a $300,000 settlement with the Minnesota Attorney General’s office following allegations of worker misclassification. The company, which connects remote customer service agents with corporations, misclassified approximately 300 Minnesotan workers as independent contractors rather than employees since May 2020.

This misclassification excluded workers from benefits such as minimum wage, overtime, meal breaks, workers’ compensation, and unemployment insurance. Arise also required agents to complete unpaid training sessions before they could begin their roles. While the company denies any wrongdoing, it chose to settle the case to resolve the allegations.

Minnesota Attorney General Keith Ellison emphasized that misclassification harms workers, law-abiding businesses, and taxpayers. The settlement includes restitution for affected workers and prohibits Arise from further operations in Minnesota. Eligible workers who used Arise’s platform since May 2020 can apply for a share of the restitution fund.