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Protecting gig workers

El Auditor a su servicio

Timothy M. O’Brien, CPA, Auditor de Denver

FIGHTING WAGE THEFT AND SICK LEAVES

My Denver Labor team recently issues two determinations involving two staffing companies that misclassified their workers as independent contractors. Denver Labor found Instawork misclassified nearly 3,000 people as independent contractors and Gigpro misclassified about 90.

These staffing companies provide labor for clients in the hospitality and warehousing industries. Work included bartending, serving, dishwashing, general labor, and cleaning across the city. As a result of the misclassification, hundreds of workers were paid less than minimum wage and did not receive overtime pay, and thousands were denied the right to paid sick leave.

In total, these new wage theft determinations revealed more than 1,200 minimum wage violations, more than 700 overtime violations, and more than 13,500 paid sick leave violations. The wage theft determinations require the two companies involved to pay almost $280,000 in restitution to workers and more than $800,000 in fines.

My office recovers $500,000 for workers to start the year Auditor's Office Works for You

Protecting gig workers

Gig work usually involves flexible or temporary work assignments performed by workers classified as independent contractors. However, even part-time or short-term workers are protected by Denver and Colorado law if they are actually employees.

When employees are misclassified as independent contractors, they are denied critical workplace protections and frequently have their wages stolen. They often suffer minimum wage and overtime violations, can’t take paid rest breaks, and don’t receive paid sick leave. If they get injured, they can’t take advantage of workers’ compensation. If they lose their jobs, they aren’t protected by unemployment insurance.

Independent contractor misclassification impacts our whole community. Not only can it harm individuals of any income level, it allows some employers to avoid paying taxes to support programs like unemployment insurance, Social Security, and Medicare. And it unfairly harms high-road employers who do pay their employees and their taxes, but who cannot compete against those who cut corners.

In the modern gig economy, issues like this are common. Under Denver’s wage theft protections, my Denver Labor team helps workers access the resources, benefits, and wages they have earned.