Chesa Boudin sues NY company for violating AB5 California law in California

San Francisco and Los Angeles sued Handy.com, which provides home services, on Wednesday for incorrectly classifying household cleaners and hand types as independent contractors rather than employees.

“We can not allow companies like Handy to illegally classify employees as independent contractors to save costs or deprive workers of legal protection,” said Chesa Boudin, San Francisco District Attorney, who co-chaired the case with the Los Angeles District Attorney. George Gascón, filed. “All Californians are harmed if companies break the law, exploit their employees and systematically misclassify.”

Handy said the suit has no merit. “This is based on a fundamental misunderstanding between the law and the rights of Handy and the Pros who use the service,” the company said in a statement. “Handy complies with all laws and regulations in California and elsewhere, and we will vigorously defend ourselves in court.”

According to Crunchbase, the New York company, founded in 2012, supported $ 110.7 million in venture capital. Handy was acquired in 2018 at an unknown price by ANGI Homeservices, the parent company of Angie’s List and HomeAdvisor.

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