All You Need To Know About Smoothstack Lawsuit

Let’s delve into the discussion of the Smoothstack Lawsuit incident which is in the headlines of the news in recent times. The times have been tough when it comes to the job market and currently, youngsters are willing to do anything to get a job in this highly demanding world. People are already depressed because of unemployment and here is the cherry on the top.

Any kind of recruitment scam is like spreading salt in a burn area and that is exactly what some companies do right now. They provide hope in exchange for hard work but at last, they are unable to fulfill that. As we all know the job market is not in a good position at all and now people are really desperate to find a job.

This Smoothstack Lawsuit was filed by an employee of Smoothstack Inc. and now it’s in court and not only their applicants but people from all over the world are looking at the incident wanting to know about what is going to happen at the end. If you find yourself interested in this matter then continue reading this article.

What Is Smoothstack Inc.?

This is basically a class-action lawsuit that was filed in April of 2023. If you do not know then let us tell you that Smoothstack is basically a staffing and tech training company that claims that they are able to provide good placements in the IT industry. Here the entire scenario begins and today in this article we are going to talk about this, so stay tuned.

What Is A Smoothstack Lawsuit?

Before starting the discussion about what is going on in this lawsuit we would like you to tell us more about this lawsuit so that while reading about the facts related to this lawsuit you could have a clear image in your head about the popular Smoothstack Lawsuit.

The case is still in the Virginia court. The decision has not been made but there are many facts of the case that are available on the internet and today we are going to summarize all that information so that you can understand the gist of the lawsuit.

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Facts Of Smoothstack Lawsuit

Now we are about to go through some basic facts and claims of the lawsuit. The 43 pages of the lawsuit more particularly argue that Smoothstack which is a staffing and tech company that swears to support the “launch” of the employment and profession of aspiring and young IT professionals via work assignments and training with their Fortune 500 consumers.

They offer a 6-month internship program in which aspirants are regularly needed to perform more than eighty hours during a week. As per the case, Smoothstack Inc. has failed to pay aspirants for the first 3 weeks of the scheduled program, and, for the remaining 5 months of the internship, they failed to deliver aspirants for any hours performed over forty in a week.

Under the Fair Labor Standards Act or FLSA, Smoothstack Inc. is needed to deliver payment to the employees for at least the lowest wage for all the hours they have worked and ‘time-and-a-half’ earnings for every hour they worked past forty each week, the lawsuit demands. These are some of the important facts of the Smoothstack Lawsuit.

There is more, aspirants are requested for 3 weeks into their internship course to sign an internship compensation contract requirement which is called the “TRAP” or you can say the “Training Repayment Agreement Provision”.

Declaring that the aspirants have to expend a 23,875 dollar penalty if they quit or be terminated only if there is an important cause or “for cause” before finishing 4,000 hours of consumer work. As per the lawsuit, it is

the equivalent of approximately two years of full-time employment.

Should the aspirants accept the contract, draftees are paid the lowest pay during the previous 5 months of their internship timetable until they get promoted to the post of consultants and can start operating with Smoothstack’s customers for somewhere around 26 dollars to 31 dollars per hour. That is what the case relays.

Right at this moment, the lawsuit states that Smoothstack Inc. once again offers its aspirants an “all-or-nothing” work contract that says that the advisors cannot quit or get terminated before billing four thousand hours to Smoothstack Inc. customers. These are some of the important facts of the Smoothstack Lawsuit.

According to the lawsuit, advisors are compelled with only two options to either sign the work contract or quit and break the TRAP Contract that they had decided to agree to long before when they started the internship agreement.

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Conclusion

In this article, we provide details and facts about this Smoothstack Lawsuit as much as possible but we want you to consider the fact that this lawsuit is still under the court of Virginia, and as we all know there are certain roles related to an ongoing case which is the reason why there are not so many information about this case.

If you are someone who is interested in stuff like that and wants to know more about these incidents then you can let us know which topic you want us to cover on this website. You can talk to us through our official email ID and if you have any queries related to this lawsuit then you can directly ask us in our comment section. See you in the next blog.

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