A California federal judge has brought an end to the Shopify Sales Workers Commission Suit, closing the door on allegations that the e-commerce giant violated California labor laws by misclassifying employees and imposing an unlawful commission structure.
U.S. District Judge Haywood S. Gilliam Jr. on Thursday approved the joint request from plaintiff Matthew Lazares and Shopify Inc. to dismiss the case. Lazares’ claims were dismissed with prejudice—meaning they cannot be refiled—while claims by similarly situated workers were dismissed without prejudice, leaving the door open for potential future action. Each side agreed to cover its own attorney fees and costs.
Allegations of Misclassification and Illegal Commission Plans
Lazares originally filed his case in California state court before Shopify moved it to federal court in October. At the heart of the dispute were accusations that Shopify improperly classified its sales employees as overtime-exempt, denying them fair compensation for long workweeks.
He alleged that Shopify sales staff were paid a base salary plus commissions, but the classification did not hold up under the law:
