05/14/2025 | Press release | Distributed by Public on 05/14/2025 09:19
Published on May 14, 2025
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DENVER - A recent Denver Labor investigation into a gig app company called GigSmart returned more than $27,000 to employees and resulted in the company making significant changes to better protect workers and employers. This change is expected to help more than 700 workers this year alone, who will be classified as employees rather than independent contractors.
"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," said Denver Auditor Timothy M. O'Brien, CPA.
GigSmart is a gig app company based in Denver. Businesses use gig app companies to find people for various types of work and for different lengths of employment. Gig apps often allow businesses to find workers to provide labor on a flexible basis. However, many of these gig app companies do not provide worker benefits such as paid time off, overtime, or workers' compensation insurance, and often neither does the hiring business.
Denver Labor investigates potential wage violations. We proactively contacted GigSmart and the conversations were productive. Our investigators met with their executive team, who insisted they did not want wage theft happening with their contracted companies. They provided lots of data and records, demonstrating a good faith effort toward compliance with employment laws.
Working with GigSmart, Denver Labor ultimately identified more than $22,000 in possible wage violations, which the company agreed to return to workers, with interest of about $4,500.
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.
"GigSmart came to the table with an end goal of making things right for workers and its clients," said Denver Labor Executive Director Matthew Fritz-Mauer. "Denver Labor gave them the tools, resources, and knowledge on how to be compliant with the law and they followed through on it."
Also during our investigation, GigSmart recognized the need to make changes to its business model statewide. Gig app companies often classify its workers as independent contractors, who are not entitled to minimum wage, overtime, paid sick leave, and other workplace rights and benefits. Independent contractors are frequently misclassified for their work and are in turn underpaid. Misclassification puts gig app companies and their clients at risk for liability.
After meeting with Denver Labor, GigSmart made the decision that starting April 2025, all shifts in Colorado posted on GigSmart will be completed by W-2 employees. Meaning, people looking for work through GigSmart are employees, not independent contractors. They will be guaranteed important workplace protections like the right to be paid at least minimum wage, earn overtime, and accrue paid sick and safe leave. They will also pay less in taxes, have access to workers' compensation insurance if they get injured on the job, and be protected by unemployment insurance if they lose their job.
"We applaud GigSmart for being a leader in the gig app industry," Fritz-Mauer said. "So many gig app companies are willing to flaunt the law to save money and outpace competitors. We cannot stress enough the importance of compliance, because the consequences for violating the law can be severe."
For example, Denver Labor has also investigated other gig app companies. In 2024, we determined that Instawork misclassified nearly 3,000 people as independent contractors, broke Denver's minimum wage ordinance more than 1,000 times, and failed to pay overtime more than 700 times. It also unlawfully denied workers the right to accrue paid sick leave, and failed to give workers notice of their rights.
"Our office is relentless in our efforts to end wage theft. We encourage businesses to know Colorado's wage laws and be compliant with them," Auditor O'Brien said.
Workers and businesses with questions about wage laws can always contact our office at Auditor@DenverGov.org or 720-913-WAGE (9243).
AUDITOR TIMOTHY O'BRIEN, CPA
Denver Auditor
Denver Auditor's Office
201 W. Colfax Ave. #705 Denver, CO 80202
Email: auditor@denvergov.org
Call: 720-913-5000
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