March 19, 2021
San Francisco District Attorney Chesa Boudin and Los Angeles District Attorney George Gascón jointly filed a lawsuit against Handy Technologies Inc. Insurance and Unemployment Insurance. Handy, a B2C online employment service provider, offers cleaning and handyman services for private households.
The lawsuit, filed Wednesday in the San Francisco Supreme Court, alleges that Handy’s employees are employees and that the company is violating California Convention Law 5 and the April 2018 Supreme Court decision of the California Supreme Court – Violates the Dynamex decision – which relied on the stricter decision ABC test for misclassification by independent contractors. It seeks refunds for handy workers across the Golden State to put a permanent stop to misclassification and civil sanctions.
“Companies like Handy must not illegally label workers as independent contractors in order to reduce costs and deprive workers of their statutory right to workplace protection,” Boudin said in a press release. “All Californians are harmed when companies exploit their employees through misclassification. This gives these companies an unfair advantage over law abiding companies by shifting the cost of their legal responsibility onto our state’s taxpayers. “
Handy is headquartered in New York City, but employs tens of thousands of workers providing workers and services in California. It is included in SIA’s report “The Gig Economy and Talent Platform Landscape”.
In a statement to FOX Business, a spokesman for Handy said the company believes the lawsuit “has no value”.
“It is based on a fundamental misunderstanding of the law and rights of cell phones and the professionals who use its service,” the spokesman said. “Handy complies with all laws and regulations in California and elsewhere, and we will vigorously defend ourselves in court.”