POSTED: 7:04 a.m. HST, Mar 17, 2014
Unite Here Local 5 is questioning the employment practices of multilevel marketer Beachbody LLC via a new website.
California-based Beachbody, known for its "P90X" and "Insanity" workout DVDs marketed via television infomercial and other means, has salespeople who are not employees and who must pay upfront and monthly fees to qualify for the chance to make money, the union alleges.
The union alleges that Beachbody salespeople are not paid hourly wages and are instead paid through a complex system of commissions which are not based on the value of what they sell. Many of the commissions are dependent upon recruitment of other salespeople, and payments are subject to change at Beachbody's discretion, the union says.
The union-built website, www.beachbodybummer.org , shares with consumers its findings about Beachbody employment practices, business practices, and product pricing. The company's nutritional shake costs "significantly more" than similar products, the union said, in a statement.
Officials from Beachbody could not be immediately reached for comment.
Similarly, with several multilevel marketing companies in operation, the union could not be immediately reached to answer why it chose Beachbody as the subject of its efforts.