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Magic Leap Sued Over Misclassifying Workers

Startup is accused of avoiding taxes on $36 million in wages.
The Magic Leap One

Source: Magic Leap Inc.

Updated on

A former Magic Leap Inc. worker is suing the company, claiming it misclassified hundreds of employees as independent contractors in order to avoid paying taxes on nearly $36 million in wages.

Kimberly Couto, whose job was to manage the gadget developer’s contract workers, said she complained in a meeting with Magic Leap management and lawyers in November about the practice. She was fired the next day, according to a lawsuit in Broward County, Florida, where Magic Leap is based.