LA, San Francisco DAs sue handyman, cleaning service over worker classification

The district attorneys in Los Angeles and San Francisco have teamed up to file a civil lawsuit against gig company Handy Technologies Inc., accusing it of misclassifying house cleaners and handyman workers as independent contractors.

Handy, based in New York, specializes in pre-arranged home cleaning and handyman services. Services are provided by 17,500 workers in California.
In the lawsuit filed Wednesday in San Francisco Superior Court, the district attorneys contend that misclassification deprives the workers of workplace protections, minimum wages, paid sick leave, disability insurance and unemployment benefits.

Handy issued a response on Wednesday: "This suit has no merit. It is based on a fundamental misunderstanding of the law and the rights of Handy and the pros who use its service. Handy complies with all laws and regulations in California and elsewhere, and we will vigorously defend ourselves in court."

In their lawsuit, San Francisco County DA Chesa Boudin and Los Angeles County DA George Gascon wrote, "Despite California's presumption that workers are employees, misclassification of employees remains a persistent economic problem in California."

"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 welfare protections guaranteed to them under state law," Boudin said.

The lawsuit stated that the company exercises significant oversight and monitors the locations and job progress of its "pros," the designation it uses for the workers. Pros can't add or subtract time from a booking and can't cancel or reschedule a booking; only Handy can, according to the lawsuit.

Before the pandemic, the clearners and handyman service providers linked to Handy were subject to dangerous situations in their work that resulted in frequent injuries on the job and reports of sexual assault, the prosecutors said.

"Workers can often feel powerless when dealing with large employers engaged in the practice of misclassifying the people who work for them, a process that cheats employees out of benefits, health care and workplace safety precautions," Gascon said. "By failing to provide healthcare, particularly during a pandemic, these companies not only have an advantage over companies that follow the law, but also are passing their healthcare costs onto all of us as taxpayers."

-- Gina Kim