Rodan and Fields Sued Over Alleged Misclassification of California Consultants

Rodan + Fields consultant Lauren Dann filed a proposed class action on March 1, 2024 alleging the skincare direct seller misclassifies its California consultants as independent contractors.

The suit, Dann v. The Rodan + Fields Company, was filed in San Francisco Superior Court under case number CGC-24-612800. It brings nine counts, including failure to pay minimum wage, failure to provide meal and rest breaks, failure to reimburse business expenses and violations of California's Unfair Competition Law.

Besides the company, the complaint names founders Katie Rodan and Kathy Fields, Chief Executive Diana Haloulos, the interim chief financial officer and several other executives as defendants.

The complaint cites company figures for 2022 showing that 33 percent of about 192,000 consultants earned no commission and that median annual earnings were 366 dollars, while consultants paid a 24.95 dollar monthly fee. It says Rodan + Fields' revenue fell to about 700 million dollars in 2022 from a peak of 1.7 billion dollars in 2018.