The fitness brand Beachbody, once a giant in the multi-level marketing (MLM) world, is now at the center of a major Beachbody class action lawsuit. Employment lawyers. Tycko & Zavareei LLP and the Clarkson Law Firm PC claim that Beachbody systematically misclassified its coaches as independent contractors to avoid paying minimum wage, overtime, and required business expenses.
Beachbody has since rebranded to BODi and announced the end of its MLM model.
How Beachbody’s Compensation Model Worked
MLM-Based Structure
For years, Beachbody operated a large MLM-based salesforce. Thousands of “coaches” sold fitness programs and supplements, mostly through social media. Coaches were recruited to promote products and manage teams, but they were officially labeled as independent contractors.
Control and Misclassification
Despite this classification, Beachbody maintained significant control over coaches, including:
- Pricing and promotions
- Marketing language and branding
- Sales strategies
- Required training and events
This level of control is usually associated with an employer/employee relationship, which is central to the class action lawsuit.
Costs and Earnings of Coaches
Coaches also paid out of pocket for:
- Marketing materials
- Business supplies
- Conferences and training
In 2021, more than 25% of coaches earned zero commissions, raising major concerns about wage theft and misclassification.
The Beachbody Class Action Lawsuit and Its Industry Impact
Current Status of the Lawsuit
The Beachbody class action lawsuit is still active as of late 2025. While the case is ongoing, it has already sparked discussion in the MLM industry about fair compensation and employee classification.
Transition to Single-Level Affiliate Program
In response, Beachbody announced it is ending its MLM system and transitioning to a single-level affiliate model. According to the company’s CEO, the MLM structure is “outdated and unsustainable.”
Potential Outcome for Former Coaches
The lawsuit could result in thousands of former coaches, especially in New York and New Jersey, receiving back wages, lost overtime, and penalties for alleged misclassification.
Contact the Working Solutions Law Firm Today!
If you have worked for a MLM and believe you were denied wages or proper classification, seek legal assistance from the employment lawyers at the Working Solutions Law Firm, located in New York City and in Livingston, New Jersey. Contact us today at (646) 430-7930 to schedule a free case evaluation and receive experienced legal counsel.
Ouremployment lawyers specialize in many areas of the law, includingunpaid wages and overtime on behalf of misclassified MLM contractors. Whatever your employment issue is, please reach out for a consultation today.