Qwick strikes historic deal with San Francisco to reclassify contract workers
CALIFORNIA, UNITED STATES — Online staffing firm Qwick Inc. recently struck a landmark agreement with the city of San Francisco to reclassify its California workforce from independent contractors to employees.
This move, announced by City Attorney David Chiu on February 22, marks a significant shift in the gig economy landscape, particularly within the hospitality sector where Qwick operates.
Under the proposed settlement, which awaits court approval, Qwick will not only change the employment status of its workers but also compensate them with $1.5 million in restitution for past misclassifications.
Additionally, the company will provide up to $350,000 in accrued sick leave to those who remain with the firm as employees and pay $250,000 in civil penalties to the city.
This agreement stems from a lawsuit filed by Chiu in August 2023, accusing Qwick of deliberately misclassifying workers to circumvent employment laws and protections. The settlement is poised to be the first of its kind in California, requiring an online staffing firm to reclassify its workers permanently.
Qwick, headquartered in Phoenix, has been operational in California since 2019, offering a mobile app that connects hospitality businesses with on-demand staff such as servers, bartenders, and cooks.
The company’s Chief People Officer, Dana Barbeau, emphasized Qwick’s commitment to fair and supportive work environments and highlighted the transition to a compliance-focused W-2 model in California as a step toward ensuring freelancers receive the benefits and protections they deserve.
The settlement has been lauded by former California legislator Lorna Gonzalez, who authored the AB 5 law targeting independent contractor misclassification. She praised the agreement for its comprehensive approach to enforcing worker reclassification, restitution, and penalties.
This groundbreaking deal signals a strong message against the illegal business model of misclassifying workers in the hospitality industry, aiming to level the playing field for law-abiding staffing companies and ensure fair treatment for workers.
Earlier this month, healthcare staffing agency Reliance Staffing was ordered to pay over $181,000 after misclassifying registered nurses, licensed practical nurses, and certified nursing assistants as independent contractors rather than employees.
Read more here.
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