Smoothstack lawsuit is a controversial story in the IT sector, where employers are exploited by their companies. However, if we delve into the details, we will find the terrible face of companies behind their shiny names. These days, materialistic people try to exploit other people who are comparatively lower in finance, education, jobs, or any aspect. Moreover, companies and firms always pay less to beginners, and without experience, employers always suffer. This lawsuit sheds light on the unfair and terrible exploitation of the workers in the Smoothstack IT Agency. To learn more about this controversial story, let’s examine the company’s exploitation, allegations, and response.
A Brief Introduction to Smoothstack
Smoothstack is an IT Agency in the USA that works to train persons in the IT industry. However, it works dually, in a hire-train way. In simple words, the company hires workers with no or little tech skills and trains them in the IT sector. After their training, these recruiters are hired. Smoothstack helps them get jobs in other companies with their training and experience. However, if these workers don’t get work at any other firm, these recruiters are hired by their firm, Smoothstack. Moreover, these recruiters are trained in the company and are paid a little during their training.
Background of Smoothstack lawsuit
After a brief introduction to the Smoothstack agency, let’s explore the lawsuit more. Smoothstack is facing a class action filed by the workers and ex-employees of this firm. They all accused the firm of exploitation. Furthermore, these workers protest against the unfair game the firm is playing with their trainees.
The complainant, who started working with Smoothstack in the spring of 2020, claims he “immediately” noticed the possible results of accepting the training contract but thought he had no choice but to accept. According to the lawsuit, the contract was offered to the applicant as an “all or nothing” offer that he had to take to continue his employment at Smoothstack, and he “desperately” required the job to maintain his life standards, especially after working three weeks without salary. According to the claim, the Plaintiff is one of the hundreds of Smoothstack employees who worked long hours at minimum salary or no pay and with no extra time salaries, but could not figure out a better opportunity because of the TRAP.
However, the lawsuit against this IT firm shocked everyone. The workers and the owners both put fingers on the lips. Such lawsuits deeply impact the whole sector badly, and the owners, who didn’t exploit the workers, also face a terrible reputation in society. Moreover, Smoothstack is losing its trust in newcomers and beginners in the IT sector.
Allegations and flaws found in the operational structure
The company is facing terrible allegations in its operational structure. The workers pointed out many flaws and vital points in this tech firm. However, detailed allegations are discussed below.
Overwork
The lawsuit’s plaintiffs alleged the company forces the employees to overwork, which is unjustified. Moreover, the ex-employers claimed that they were asked to work 80 hours per week, which is too exhausting and disturbs their physical and emotional health. Additionally, the workers are exploited during training sessions and after the job.
Non-paid training
Another claim in this controversy is non-paid training. Smoothstack offers a six-month training session for the workers to build their careers as IT professionals but fails to provide the basic facilities and payments to its workers. The employers said they were not paid for the first three weeks of their training. After that, they are paid a small amount for the rest of the five months, which is pathetic.
Underpaid salary
The plaintiffs of this case also alleged the firm’s underpaid salary. The workers have to work 80 hours per week but are paid for only 40 hours per week, which is an injustice to their hard work. The half payment seems crucial and unfair to the IT force.
TRAP
TRAP (training repayment agreement provision) is a training agreement that the workers sign during training. According to the TRAP, the trainee has to work for the company for almost 4000 hours. If they resign or are terminated, they must pay $23000 as a penalty for violating TRAP. However, it becomes nearly two years if we calculate the 4000 hours. The workers’ exploitation has become a very typical term in the Smoothstack. TRAP is a trap for beginners who have no choice and no option but to sign it. This agreement squeezes the energy and potential of the employers. Moreover, employers feel helpless during their jobs.
What makes TRAP even more troubling
What makes TRAP even more troubling is that this isn’t just happening at Smoothstack. These kinds of contracts are showing up more and more in industries like IT, healthcare, and finance. Companies say they need these agreements to protect their investment in training. But many workers and labor advocates argue these contracts exploit vulnerable employees, especially those at the start of their careers.
The agreement isn’t illegal, but it’s sparked a lot of debate about **fairness**. Shouldn’t workers be free to leave if the job isn’t right for them? And should they really face such a massive financial penalty for wanting to move on?
In Smoothstack’s case, the TRAP agreement is a major reason why employees feel wronged. They thought they were getting a chance to learn and grow. Instead, they ended up tied to a contract that made leaving almost impossible without serious consequences.
TRAP agreements like this raise big questions about **workers’ rights**. They may not be illegal, but are they fair? As more people hear about these contracts, you can bet there will be more discussions—and more pushback—not just in courtrooms, but among workers everywhere.
Current status of this lawsuit
The lawsuit against Smoothstack is ongoing, and the final decision is pending as many controversies and details are coming. However, this lawsuit was filed in April 2023, but in May 2023, the company filed a motion of dismissal of this case. The case has not been dismissed yet, but the plaintiffs have taken back part of the allegation of about 4000 hours. Moreover, the other allegations are being discussed in the courtroom. Besides this, the plaintiffs are waiting for the court’s justified decision to stop such humiliation and exploitation of the workers.
What This Means for the IT Industry
The outcome of the Smoothstack lawsuit could ripple across the entire IT industry. If the court rules in favor of the plaintiffs, it could force other companies to reconsider how they treat their employees, especially newcomers who are often at a disadvantage. The IT industry has long been criticized for its tendency to exploit fresh talent, but this case could set a new standard for fair treatment.
On the other hand, if Smoothstack manages to dismiss or settle the case quietly, it could encourage other companies to keep using similar exploitative practices. The final outcome of this lawsuit will likely have a lasting impact on how companies in the IT sector handle their employees.
Possible Outcomes
The lawsuit could end in one of two ways:
- Settlement: Smoothstack may choose to settle the case outside of court, avoiding further damage to its reputation. This could allow them to control the narrative while agreeing to undisclosed terms with the plaintiffs.
Court Ruling: If Smoothstack decides to fight, the court could force the company to compensate its workers and reform its business practices. A victory for the plaintiffs could lead to a wave of similar lawsuits across the industry, holding companies accountable for their actions.
Obligations and implications of this lawsuit in the future
This case is an eye-opening dispute in the IT industry. As we know, the proceedings are ongoing, and this case will deeply impact the whole sector in two ways. Either they all lose reputations and goodwill in society; otherwise, they will stand firmly on their motto and exploit the newcomers more often. Moreover, this case will take these possible sides. 1stly, the company will try to make a settlement deal with the plaintiffs outside the court and sign a disclosed agreement. On the other hand, the company fights for its reputation and discloses all the matters and details to the public. Additionally, the firm explains all the allegations to the court and wipes all the dirty spots on its goodwill.
Conclusion
To summarize the above, we reach the point that the Smoothstack lawsuit is a commonly controversial debate in the materialistic society where most company owners try to exploit the worker’s hard work and energy. Many of them pay less for the overwork. Those who care for their workers and financially boost their energy are rare. However, you must raise your voice if you see some injustice in any sector where your hard work is not appreciated and appropriately paid.
FAQs
Who is the owner of Smoothstack?
John Akkara is the CEO of Smoothstack.
What is TRAP?
TRAP is an agreement in the Smoothstack for the trainees who sign it during their training session. According to this agreement, they must work 4000 hours for the company as consultants.
What is the procedure for resigning from Smoothstack if an employer wants to?
If any worker has signed TRAP during training, he has to pay $23000 as a penalty for violating the TRAP.
Has the lawsuit against Smoothstack been resolved?
No, the case is still ongoing; however, the plaintiffs took back the allegation of 4000 work hours.