If you are looking for a career in IT, you may have heard of Smoothstack, an IT staffing agency that offers training and job placement for aspiring tech professionals. However, you may also want to know about the class-action lawsuit that accuses Smoothstack of exploiting its trainees and violating labor laws. Here are some key points you should know before joining Smoothstack or any similar IT staffing company.
What is Smoothstack?
Smoothstack is an IT staffing company that was founded in 2014 by Rajiv Puri, a former executive of Revature, another IT staffing company that has been sued for similar allegations. Smoothstack operates in several locations across the US, and claims to have partnered with over 50 clients, including Fortune 500 companies, government agencies, and non-profit organizations.
Smoothstack offers two main services: IT talent solutions and IT training programs. The former involves providing qualified IT professionals to its clients on a contract or permanent basis. The latter involves recruiting and training individuals who are interested in pursuing a career in IT. Smoothstack training programs are divided into two tracks: Java and .NET. Each track lasts for 12 weeks and covers various topics such as programming languages, frameworks, databases, web development, and cloud computing.
What is the Smoothstack lawsuit?
The class-action lawsuit against Smoothstack was filed in February 2020 by Justin O’Brien, a former trainee and employee of Smoothstack. O’Brien alleges that Smoothstack violated the Fair Labor Standards Act (FLSA) and other state and federal laws by failing to pay its trainees and employees minimum wage, overtime, and other benefits. He also alleges that Smoothstack Training Repayment Agreement Provision (TRAP) is unlawful and unenforceable, as it obligates its trainees and employees to repay the full cost of the training ($25,000) if they leave the company within two years of employment.
The lawsuit seeks to represent all current and former trainees and employees of Smoothstack who have been affected by the alleged violations. The lawsuit demands that Smoothstack pay its trainees and employees the unpaid wages, overtime, and benefits that they are owed, as well as liquidated damages, interest, and attorney fees. The lawsuit also seeks to invalidate and cancel Smoothstack TRAP, and to enjoin Smoothstack from enforcing it against its trainees and employees.
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Why does it matter?
The lawsuit against Smoothstack has significant implications for the IT staffing industry and the tech sector in general. The lawsuit raises important questions about the legality and morality of Smoothstack employment practices, and how they affect the rights and interests of its trainees and employees.
The lawsuit challenges the compliance of Smoothstack with the FLSA and other labor laws that are designed to protect the rights and welfare of workers. The lawsuit also exposes the predatory and exploitative nature of Smoothstack business model, which relies on luring and trapping unsuspecting individuals who are looking for a career in IT. The lawsuit also reveals the deceptive and coercive tactics that Smoothstack uses to induce its trainees and employees to sign the TRAP, which limits their freedom and autonomy in pursuing their professional and personal aspirations.
The lawsuit also highlights the ethical issues that stem from the power imbalance and information asymmetry between Smoothstack and its trainees and employees. Smoothstack has more power and information than its trainees and employees, as it controls the access and quality of the training, the availability and suitability of the job placements, and the enforcement and interpretation of the TRAP. Smoothstack also has more influence and leverage than its trainees and employees, as it can threaten and sue them for breaching the TRAP, or blacklist and badmouth them in the IT industry.
The lawsuit also raises ethical questions about the social and environmental impact of Smoothstack employment practices, and how they affect the public interest and the common good. Smoothstack employment practices may have negative consequences for the quality and diversity of the IT workforce, as they may discourage and deter talented and qualified individuals from pursuing a career in IT, or force them to accept substandard and unsatisfactory working conditions. Smoothstack employment practices may also have adverse effects on the innovation and competitiveness of the IT sector, as they may stifle and constrain the creativity and productivity of its trainees and employees, or prevent them from contributing to other projects and organizations.
The lawsuit also challenges the ethical responsibility and accountability of Smoothstack and other IT staffing companies, and how they align their actions and decisions with their stated mission and vision. Smoothstack claims that its mission is to “empower the next generation of IT professionals” and that its vision is to “create a diverse and inclusive IT workforce that reflects the world we live in”. However, the lawsuit suggests that Smoothstack employment practices contradict and undermine its mission and vision, as they exploit and oppress its trainees and employees, and create a homogeneous and exclusive IT workforce that reflects the interests of Smoothstack and its clients.
What should you do?
If you are considering joining Smoothstack or any similar IT staffing company, you should do your research and be informed about the employment practices and legal rights involved. You should also be aware of the potential risks and benefits of signing a contract with such a company, and weigh them carefully before making a decision. Here are some tips on what to do:
- Go over the terms and conditions of the contract carefully. If something seems ambiguous or confusing, ask questions and look for clarification. Do not sign anything that you do not agree with or understand.
- Seek legal advice from a lawyer or a labor rights organization if you have any doubts or concerns about the contract or the company. Do not rely on the company representatives or recruiters to provide you with accurate or unbiased information.
- Compare the company practices with other IT staffing firms and industry norms. Find out what the prevailing wage, working hours, and benefits are for IT professionals in your area and skill level. Find out what the reputation and reviews are for the company and its clients.
- Talk to current and former trainees and employees of the company and get their firsthand experiences and perspectives. Find out how they were treated, paid, and placed by the company. Find out how they felt about the training, the job, and the TRAP.
- Explore other options and alternatives for pursuing a career in IT. Find out what other resources and opportunities are available for learning and working in IT, such as online courses, boot camps, internships, or freelance projects. Find out what other skills and qualifications are in demand in the IT industry, and how to acquire them.
Conclusion
Smoothstack is an IT staffing company that offers training and job placement for aspiring tech professionals, but it is also facing a class-action lawsuit that accuses it of exploiting its trainees and violating labor laws. The lawsuit has significant legal and ethical implications for the IT staffing industry and the tech sector in general, and it raises important questions about the employment practices and legal rights of Smoothstack trainees and employees. If you are considering joining Smoothstack or any similar IT staffing company, you should be informed and cautious about the potential risks and benefits involved, and make a wise and informed decision.
FAQs
How many trainees and employees are involved in the class-action lawsuit against Smoothstack?
According to the complaint, the lawsuit seeks to represent all current and former trainees and employees of Smoothstack who have been affected by the alleged violations. The exact number of trainees and employees involved in the lawsuit is not specified, but it could be in the hundreds or thousands, given that Smoothstack operates in several locations across the US and claims to have partnered with over 50 clients.
What is the current status and progress of the lawsuit, and when is it expected to be resolved?
The lawsuit was filed in April 2020 in the US District Court for the Eastern District of Virginia. Since then, the parties have engaged in discovery, motions, and settlement negotiations. According to the latest court documents, the parties have reached a tentative settlement agreement, subject to the approval of the court. The terms and conditions of the settlement are not disclosed, but they may include monetary compensation, injunctive relief, and attorney fees. The parties have requested the court to schedule a hearing for the approval of the settlement, which is expected to take place in the next few months.
How does Smoothstack respond to the allegations and defend its employment practices?
Smoothstack has denied the allegations and defended its employment practices in its answer to the complaint. Smoothstack has argued that its trainees and employees are exempt from the minimum wage and overtime requirements of the FLSA, as they qualify as professional, administrative, or executive employees. Smoothstack has also argued that its TRAP is valid and enforceable, as it reflects the reasonable and necessary costs of the training, and it does not prevent its trainees and employees from pursuing other employment opportunities in the IT industry. Smoothstack has also raised several affirmative defenses, such as good faith, statute of limitations, waiver, and release.
