The San Francisco City Attorney's Office has secured a stipulated judgment requiring GigSmart to reclassify its workers as employees. This is the third such case since February 2024, where gig companies in San Francisco have been legally compelled to change their worker classification. GigSmart will pay $703,000 in restitution to its California workers and provide them with full employee benefits and protections.
The San Francisco City Attorney’s Office today announced that it has secured a stipulated judgement to require GigSmart to reclassify its workers as employees, following. This is the third time since February 2024 the City Attorney’s Office has legally compelled a gig company to reclassify its workforce.
GigSmart, a Denver-headquartered gig company that has been operating in San Francisco since at least September 2019, connects businesses with workers to fill empty shifts for roles including catering, delivery, hospitality, senior care, and manufacturing, according to the City Attorney’s Office. The stipulated judgement requires GigSmart to pay a restitution of $703,000 to its California workers, and convert them from independent contractors to employees, ensuring full employee benefits and protections. The number of workers who will share this judgment is not disclosed. , in February 2024, San Francisco City Attorney’s Office secured the country’s first injunction to require a gig company,GigSmart cooperated with the investigation and agreed to the stipulated judgment upon being notified that it had misclassified its shift workers, according to the City Attorney’s Office. “We appreciate GigSmart’s willingness to come to the table early to find a solution that reclassifies these workers and provides them fair restitution,” said City Attorney David Chiu. Worker misclassification “is unfair to businesses that play by the rules. GigSmart ultimately made the right choice here, and we hope others follow suit.”“We found the city of San Francisco very reasonable in terms of helping us understand what the statutes and the regulations were in the city,” said Ted Catino, co-founder of GigSmart, in an interview. Regarding the independent contractor model, “there was really no way for us to know that it was going to run into such regulatory headwinds because Uber had been out there for years,” he added. In June 2024,“The city of San Francisco is sincerely trying to create an even playing field for all of the companies,” said Catino. “It’s just that the playing field that they will create will be difficult for us to be competitive because we will now have to compete with all the mega staffing agencies that have been around for years.” Potrero Walgreens, which services S.F. General Hospital, slated to close during our 2024 year-end campaign. We are immensely grateful and excited to step into 2025 knowing you're with us. We know 2025 will be demanding and we will need local news more than ever. It's never too late to join theREPORTER. Yujie Zhou came on as an intern after graduating from Columbia University's Graduate School of Journalism. She is a full-time staff reporter as part of the Report for America program that helps put young journalists in newsrooms. Before falling in love with the Mission, Yujie covered New York City, studied politics through the “street clashes” in Hong Kong, and earned a wine-tasting certificate in two days. She’s proud to be a bilingual journalist. Follow her on Twitter @Yujie_ZZ. Please keep your comments short and civil. Do not leave multiple comments under multiple names on one article. We will zap comments that fail to adhere to these short and easy-to-follow rules.Sign up for Mission Local's daily newsletter: The latest San Francisco news in your inbox, no more than once a day, for free.
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