The Denver Auditor’s Office found two staffing firms misclassified workers as independent contractors and owe more than $1 million in fines and restitution.
Hundreds of workers at Instapro and Gigwork were misclassified, according to the office. As a result, the workers were paid less than minimum wage, did not receive overtime pay and were denied the right to paid sick leave.
“Workers’ rights violations hurt all of us, especially when they’re so widespread,” Auditor Timothy O’Brien said in a press release. “Our decisions today ensure we’re following through on the intent of the law to protect families and communities from the harms of wage theft.”
The auditor’s office said it found more than 1,200 minimum wage violations, more than 700 overtime violations and more than 13,500 paid sick leave violations. The companies are being required to pay almost $280,000 in restitution and more than $800,000 in fines.
Both companies will have the opportunity to appeal the findings, according to the office.
“Instawork is coordinating with the city of Denver to address an incomplete and nonfinal administrative determination issued by Denver Labor,” Kira Caban, head of strategic communication at Instawork, said in an email to SIA. “While the company does not comment on active investigations, Instawork prioritizes compliance with applicable regulations and is committed to ensuring every person who uses our platform to find local work receives full and proper worker protections including payment at hourly rates that meet or exceed the minimum wage.”
SIA has also reached out to Gigwork for comment.
The two firms provide staffing for clients in the hospitality and warehousing industries, according to the Denver Auditor’s Office. Work includes bartending, serving, dishwashing, general labor and cleaning across the city.
Instawork misclassified nearly 3,000 people as independent contractors, and Gigpro misclassified about 90, according to the Auditor’s Office.
“In the modern gig economy, issues like this are common,” O’Brien said. “Under Denver’s wage theft protections, we are able to help workers access the resources, benefits and wages they have earned.”