San Francisco Lawsuit Accuses Cleaning Company of Misclassifying Workers

Changes to California labor law in recent years have raised questions about the way gig economy companies classify their workers. Many of them have business models that rely on independent contractors.

Handy Technologies Inc. is one such app-based company that uses independent contractors. The business enables clients to schedule home cleaning and repair services. Two district attorneys from San Francisco and Los Angeles are suing the company for allegedly misclassifying thousands of California workers as independent contractors.

According to the lawsuit filed in San Francisco County Superior Court, Handy did not pay workers minimum wage, overtime, sick pay and reimbursements for job-related expenses. The lawsuit pointed out that the company does not meet the three requirements necessary to classify workers as independent contractors under state law.

The California Supreme Court established a standard, known as the ABC test, for determining a worker’s employment status. To classify workers as independent contractors, a company must show it does not have direct control over workers, the work falls outside the company’s usual scope of business, and the worker is “customarily engaged in an independently established trade.”

Handy allegedly used an app to monitor workers for several hours before and after their scheduled shifts, thereby having direct control over them. The company also fined workers if they arrived late to assignments or left early. The district attorneys are seeking a court order that requires Handy to pay civil penalties, classify workers as employees and provide restitution for unpaid wages.

If you suspect you have been misclassified as an independent contractor in the San Francisco Bay Area, reach out to the qualified employment lawyers at McCormack Law Firm. We are dedicated to protecting workers’ rights and can help you make sense of the complicated laws surrounding the gig economy.