US Rep. Adam Schiff, D-California, and five other US representatives released a letter Wednesday calling on the US Department of Labor to investigate Deel Inc., a San Francisco-based global employer-of-record provider with a $12 billion valuation, over concerns the company is misclassifying employees as independent contractors.

Deel said in a statement to SIA the allegations are incorrect and based on inaccurate reporting. The company also said it was not contacted by legislators to verify information.

The letter follows an announcement earlier this month by California state Sen. Stephen Padilla, D-San Diego, that he was calling for an investigation of the company over allegations of misclassification.

Wednesday’s announcement by Schiff cites public reporting that claims misclassification at Deel. The letter was directed to Julie Su, acting secretary at the US Department of Labor.

“As a means of maximizing profitability and growth, the startup made the decision to adopt highly unusual labor practices, including recruiting a significant share of its employees as independent contractors, covering everything from sales to senior management positions going all the way up to its CEO, who has publicly stated that he is an independent contractor for the company,” the letter said.

The letter continued, “As well as raising significant concerns about the welfare and well-being of the workers involved, we are concerned that it may have far-reaching consequences throughout California and the broader American economy.”

In addition to Schiff, also signing the letter were US Representatives Bill Pascrell, D-New Jersey; Raúl Grijalva, D-Arizona; André Carson, D-Indiana; John Garamendi, D-California; and Haley Stevens, D-Michigan.

The company disputed the claims in the letter.

“These allegations are wrong, based on inaccurate reporting, and sadly, no one verified the information with us,” Deel spokesperson Elisabeth Diana said in a statement to SIA.

“We want the same things as the government does — to help and educate companies to classify their workers properly,” Diana said. “That is what we do, in over 120 countries.”

Deel says it has more than 100 compliance experts in house and has invested, together with universities, in tools and technology to help clients with classification worldwide.

“The letter alleges we advise clients improperly — that would be at complete odds with our business model,” Diana said. “There are many other inaccuracies in the letter, which suggest a deep misunderstanding of our business. About 12% — not half — of our workforce is based in the US, an overwhelming majority of which are full-time employees — not contractors. And our co-founder and CEO is a full-time employee.”