Global recruitment company Networkers International has put aside £1m to cover potential costs of litigation against the company in the US from three individuals who believe they were improperly classified as independent contractors rather than employees.

The complaint was filed during 2006, with the plaintiffs arguing they are “due additional payments for violations of wage and hour laws including those governing overtime pay, rest breaks, and meal breaks principally during the period 2005 and 2006”, according to a statement released by Networkers today.

The statement says that last week [12 December 2012], the California Court of Appeal ruled that certain elements of the claim could be certified as a class action – certification it was denied in 2007 – with Networkers saying today that it is making an exceptional provision of £1m in its 2012 full year accounts to “cover all likely eventualities”.

This is in addition to £0.6m already earmarked for this purpose.

The company is considering whether or not to appeal against the decision to grant class certification. The case, should it proceed tot trial, would likely be heard in 2015, Networkers says.

Networkers did not immediately respond to Recruiter’s request for clarification and further comment.