GigSmart to return $27K in wages to workers after Denver auditor investigation
A gig app based in Denver has made significant policy changes following an investigation by the city auditor, resulting in the return of tens of thousands of dollars in suspected withheld wages plus interest to workers. The impact of these changes is expected to benefit over 700 workers employed through GigSmart this year, a company that offers a variety of part-time and full-time positions through its website and app.
According to a news release from the Denver Auditor’s Office, GigSmart’s executive team cooperated with regulators by providing data and records. As a result, they took responsibility for the more than $27,000 owed to workers and ensured that it was remedied.
In response to the investigation, GigSmart also decided to reclassify workers as employees rather than independent contractors starting in April. This change guarantees workers a minimum wage, overtime pay, sick leave, and other workplace protections.
Denver Auditor Timothy O’Brien praised GigSmart for voluntarily altering its business model to prevent wage theft and misclassification, stating, “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.”
GigSmart has not yet responded to inquiries about the investigation and its outcomes. In the past, the Denver Auditor’s Office investigated another gig staffing company, Instawork, resulting in an order for the company to pay over $2.3 million in restitution, penalties, and fines.
Stay updated on business news by subscribing to our Economy Now newsletter.
