A Denver-based gig app has changed its policies and agreed to return tens of thousands of dollars in suspected withheld wages plus interest to workers after a city auditor investigation.
The outcome is expected to benefit more than 700 workers employed through GigSmart this year, which advertises a variety of part-time and full-time positions through its website and app, according to a Denver Auditor’s Office news release.
The office said GigSmart’s executive team turned over data and records when contacted by regulators.
“Although the businesses that hired workers from GigSmart could have been liable for the underpayments, GigSmart took responsibility and ensured the more than $27,000 owed to workers was remedied,” the office said in the release.
GigSmart also decided in light of the investigation that, starting in April, workers would be classified as employees rather than independent contractors, guaranteeing a minimum wage, overtime, sick leave and other workplace protections.
“We recover millions in stolen wages every year, but it is rarer for us to work with a company that voluntarily alters its business model to prevent wage theft and misclassification,” Denver Auditor Timothy O’Brien said in the release. “We encourage businesses to know Colorado’s wage laws and be compliant with them.”
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GigSmart did not immediately respond to an inquiry about the investigation and its outcome.
The office previously investigated another gig staffing company, Instawork, resulting in an order that the company pay more than $2.3 million in restitution, penalties and fines.
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