San Francisco City Attorney David Chiu is taking legal action against the staffing company WorkWhile, accusing it of worker misclassification. Chiu claims that WorkWhile is denying workers their lawful protections, wages, and benefits by treating them as independent contractors—a status that San Francisco says does not hold up under the scrutiny of California labor laws in this case. This lawsuit represents an effort on behalf of the People of the State of California to address an issue that has become widespread in numerous industries.
"Misclassification remains one of the most insidious types of worker exploitation," City Attorney Chiu stated. The implication is clear: WorkWhile has the means to correctly classify its workers but supposedly opts not to, allegedly committing systemic wage theft and unfairly placing the financial burden of employee protections back onto the workers themselves. The company is being brought to court for breaching an array of state and local labor laws and for gaining an unfair business edge over compliant companies, as outlined by the San Francisco City Attorney's Office.
California's response to the issue of worker misclassification includes passing one of the nation's most stringent laws, Assembly Bill 5. Lorena Gonzalez Fletcher, of the California Labor Federation and the bill's author, remarked, "California passed the strongest law in the nation to stop worker misclassification, but laws cannot change employer practices unless there is enforcement". In Chiu's attack against the practices of WorkWhile, he seeks injunctive relief to cease what he considers illegal activities, aligning with the state's vigilant stance on this matter, as cited by the San Francisco City Attorney's Office.
The rise of the gig economy has complicated the landscape of labor rights, and institutions such as the San Francisco Labor Council have been vocal about the cascading societal costs when workers are robbed of fundamental protections. Kim Tavaglione, Executive Director of the council, supported Chiu's legal pursuit, asserting, "When gig workers are denied the basics of workers’ compensation, overtime and minimum wage, society often picks up the bill". This lawsuit, then, is seen not just as a battle for the rights of individuals, but as an attempt to uphold a fair competitive environment across the broader economy, according to the San Francisco City Attorney's Office.
In detailing the lawsuit, the City Attorney's Office reveals that WorkWhile categorizes half a million workers across 40 major metropolitan areas as independent contractors—a classification that strips away statutory rights such as proper meal breaks, health expenditures, and reimbursement for job-related expenses. Furthermore, the company faces accusations that it has provided substandard benefits in the place of legally required workers’ compensation insurance, going as far as to charge its workers a "Trust & Safety Fee" for the same. Affected or former WorkWhile workers are urged to reach out with information that could bolster the case representing the People of the State of California v. WorkWhile, et al, wordings that resonate with the gravity due to the case held in San Francisco Superior Court.