San Diego Sues Campbell's Over Worker Misclassification

City Attorney alleges Campbell's improperly labeled workers as contractors to avoid providing benefits.

Published on Feb. 25, 2026

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The San Diego City Attorney's Office has filed a lawsuit against The Campbell's Company, alleging the food giant has misclassified its workers as independent contractors rather than employees, depriving them of basic wage protections under California law.

Why it matters

Worker misclassification is a widespread issue that deprives employees of critical benefits and rights, while giving companies an unfair advantage over competitors who properly classify their workers. This lawsuit aims to hold Campbell's accountable and set a precedent for how the 'ABC test' for determining employee status should be applied.

The details

The lawsuit claims Campbell's, along with subsidiaries Snyder's-Lance and Pepperidge Farm, use a 'direct-store-delivery' model that requires workers to stock retail shelves, but labels them as independent contractors rather than employees. This allegedly allows the companies to 'evade core wage protections' like minimum wage, overtime pay, and sick leave.

  • The lawsuit was filed on Monday, February 24, 2026 in San Diego Superior Court.

The players

The Campbell's Company

A major food manufacturer that owns brands like Campbell's Soup, Pepperidge Farm, and Snyder's-Lance.

Heather Ferbert

The San Diego City Attorney who filed the lawsuit against Campbell's.

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What they’re saying

“California law is clear: workers who perform essential functions under a company's control are employees, not independent contractors. Misclassification robs workers of basic protections, hurts law-abiding businesses, and undermines our economy.”

— Heather Ferbert, San Diego City Attorney

What’s next

The case will now proceed through the San Diego Superior Court, where a judge will determine if Campbell's workers should be reclassified as employees under California's 'ABC test' for worker classification.

The takeaway

This lawsuit highlights the ongoing battle over worker classification, with companies seeking to cut costs by labeling workers as contractors, while regulators fight to ensure workers receive the full protections and benefits they are entitled to under the law.