Handy app pays $6 million dollar labor violation settlement
SAN FRANCISCO - Handy Technologies Inc., a company that offers handyman and cleaning services via app, has agreed to pay $6 million in settlement funds for allegedly misclassifying their employees, San Francisco District Attorney Brooke Jenkins announced Thursday.
Together, the San Francisco and Los Angeles district attorney's offices filed suit against Handy for allegedly classifying their workers as independent contractors, not employees. Handy workers were allegedly deprived of workplace benefits that they were entitled to, which violates state employment laws like 2019's State Assembly Bill 5, according to Jenkins.
As a result of the suit, Handy has agreed to pay $4.8 million in restitution to over 25,000 workers who worked from March 2017 to this month. It also must pay $1.2 million in a civil penalty, and agreed to a permanent injunction that will prevent workers from misclassification again.
Cleaning and handyman workers in Handy's app, referred to as "Pros," will also be allowed to set their own pay rates, negotiate terms with customers and inquire about requested services. Pros will now not be penalized by the app for rejecting the job after speaking with potential clients.
"This settlement is not only a victory for the California workers who were misclassified by Handy Technologies, Inc., but also a warning to other companies that engage in similar unlawful behavior," Jenkins said. "This behavior by corporations will not be tolerated as workers are being harmed, taxpayers are burdened with paying the costs of these companies' legal responsibilities, and law-abiding businesses are forced to compete on an unlevel playing field."
Eligible Pros in California will be contacted by a claims administrator in the coming months to receive their share of the restitution funds, according to Jenkins.
Handy did not immediately respond for a request for comment.
