IAC Inc.’s Handy Technologies agreed to pay $6 million to settle a labor lawsuit filed by California prosecutors who alleged the company misclassified workers as independent contractors rather than employees.
(Bloomberg) — IAC Inc.’s Handy Technologies agreed to pay $6 million to settle a labor lawsuit filed by California prosecutors who alleged the company misclassified workers as independent contractors rather than employees.
Handy, based in New York, offers on-demand access to its “Pros,” cleaning maids and handypersons, for small tasks at a fixed price. The agreement, detailed in a court filing, requires Handy to allow its Pros to negotiate hours and pay without being bound to perform the work or being penalized by the company for rejecting a job, according to San Francisco District Attorney Brooke Jenkins.
“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 in a statement.
The settlement marks the latest effort by California prosecutors to enforce Assembly Bill 5, a law enacted in 2020 that aims to convert gig-economy workers from independent contractors to employees with benefits. It expanded the universe of workers who qualify for overtime, health care and other benefits. The law remains mired in legal challenges.
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Under the settlement, Handy must pay $4.8 million in restitution to California workers and a civil penalty of $1.2 million. In 2018, the company was acquired by ANGI Homeservices Inc., a unit of IAC.
The case is California v. Handy Technologies Inc., CGC-21-590442, California Superior Court (San Francisco).
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