Deel faces scrutiny over alleged hiring irregularities
CALIFORNIA, UNITED STATES — California Senator Steve Padilla has called for an investigation into fintech startup Deel’s hiring practices.
Padilla alleged that Deel, an HR-focused firm, may have misclassified hundreds of employees as independent contractors, effectively denying them full employment benefits and labor protections.
Additionally, Padilla suggests that Deel could be advising its clients — including household names like Nike, Subway, and Reebok — to adopt similar practices, potentially enabling them to evade taxes and withhold employee benefits in California.
Deel dismissed these allegations as unfounded. The company emphasizes its strong commitment to compliance, noting that contractors comprise less than one per cent of its workforce in the United States.
The spotlight fell on Deel’s hiring practices after an Insider report revealed that even Deel CEO Alex Bouaziz was classified as an independent contractor. This revelation sparked confusion among several employees who believed they were hired as full-time staff.
Senator Padilla stressed that no company should be exempt from the law, accusing Deel of openly violating California’s labor laws.
Deel, founded in 2019, operates an employer-of-record model, providing global payroll and HR services, and currently employs over 2,000 staff across 90 countries.
Related news
- Outsourcing boosts startups’ appeal to VCs · 24 Aug
- GTECH Park expansion to open 1,500 BPO jobs in Jamaica · 10 Jul
- ICT sector potential key to Fiji’s economic recovery · 10 Jul
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
