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District attorneys in San Francisco and Los Angeles sued Handy.com on Wednesday for allegedly classifying workers as independent contractors.
According to the lawsuit, Handy, a New York-based company that provides internal services such as cleaning and repair through its app, violates California Bill 5 (AB5) in California, as well as a state ruling in the Supreme Court in 2018 by not to classify the cleaners and artisans in the state as employees, rather than contractors.
“The incorrect classification of workers as independent contractors instead of employees leaves them without important workplace protection, such as the right to a minimum wage; access to paid sick leave; disability insurance; and unemployment insurance, ”said Chesa Boudin, San Francisco District Attorney.
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In a statement issued to FOX Business, a Handy spokesman said the company believes the lawsuit “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 spokesman said. “Handy complies with all laws and regulations in California and elsewhere, and we will vigorously defend ourselves in court.”
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The case was filed by the Boudin and Los Angeles District Attorney George Gascón in the San Francisco Supreme Court.
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“Companies like Handy cannot be allowed to illegally label workers as independent contractors in order to save costs and deprive workers of their right to protection in the workplace,” Boudin said in a statement. ‘All Californians are disadvantaged if corporations exploit their employees through misclassification; In doing so, the businesses are giving an unfair advantage over law-abiding businesses by shifting the cost of their legal obligations onto our state’s taxpayers. ”
Sanesa District Attorney Chesa Boudin (pictured) filed a lawsuit against Handy.com in San Francisco Superior Court on Wednesday, along with George Gascón, Los Angeles District Attorney. (AP)
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Domestic workers such as those employed by Handy have always been particularly vulnerable to labor injustices, but amid this pandemic, these vital workers face even greater risks when it comes to protecting health and well-being guaranteed by state law. be, be denied, “Boudin added.
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According to the San Francisco Chronicle, Handy was involved in other legal disputes over subdivision and harassment of workers settled by arbitration.
The newspaper reported that the company has approximately 9,000 employees in the San Francisco Bay Area and approximately 13,400 employees in the Los Angeles area.