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District attorneys in San Francisco and Los Angeles sued Handy.com on Wednesday for allegedly misclassifying its workers as independent contractors.
According to the lawsuit, Handy – a New York-based company that offers in-house services like cleaning and repairs through its app – is allegedly violating California’s Assembly Bill 5 (AB5), as well as a decision by the state Supreme Court of 2018 for not classifying its janitors and manual workers in the state as employees, rather than contractors.
“Wrongly classifying workers as independent contractors instead of employees leaves them without crucial protections in the workplace, such as the right to a minimum wage; access to paid medical leave; disability insurance; and unemployment insurance, ”said a press release from San Francisco district attorney Chesa Boudin.
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In a statement provided to FOX Business, a spokesman for Handy said the company believes the process “has no merit”.
“It is based on a fundamental misunderstanding of the law and rights of Handy and the Professionals who use his service,” said the spokesman. “Handy complies with all laws and regulations in California and elsewhere, and we will vigorously defend ourselves in court.”
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The lawsuit was filed in the San Francisco Superior Court by Boudin and Los Angeles County District Attorney George Gascón.
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“Companies like Handy cannot be allowed to illegally label workers as independent contractors in order to cut costs and deprive workers of their legal right to protect the workplace,” said Boudin in a statement. “All Californians are harmed when companies exploit their employees through incorrect classification; doing so gives these corporations an unfair advantage over law-abiding companies, shifting the costs of their legal responsibilities to taxpayers in our state. ”
San Francisco District Attorney Chesa Boudin (pictured) filed a lawsuit against Handy.com on Wednesday in the San Francisco Superior Court, alongside Los Angeles County District Attorney George Gascón. (AP)
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“Domestic workers like those employed by Handy have always been particularly vulnerable to labor injustices, but in the midst of this pandemic, these essential workers face even greater risks when they are denied the health and well-being protections guaranteed by state law,” Boudin added.
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According to the San Francisco Chronicle, Handy was involved in other legal disputes over worker misclassification and harassment complaints, which were resolved by arbitration.
The newspaper reported that the company has about 9,000 workers in the San Francisco Bay area and about 13,400 workers in the Los Angeles area.