Angi Services, the company behind Handy Technologies, has reached a multi-million dollar settlement following allegations of misleading advertisement practices concerning workers' earnings and payment schedules. According to a press release from the New York Attorney General's Office, the company advertised hourly rates and daily payments that didn't reflect reality, impacting thousands of workers using the platform for household services like cleaning and lawn care.
The joint investigation by the Office of the Attorney General (OAG) and the Federal Trade Commission (FTC) found that Handy ran an excessive amount of ads in various parts of New York. "New York workers deserve to be paid what they are promised, when they are promised," Attorney General Letitia James stated. In some instances, workers were paid close to 50 percent less than advertised rates, and despite promises of daily payments, the norm was payment nearly a week later unless workers shouldered a fee for faster processing.
Handy's ads claimed lawn care professionals could earn "up to $53/hr," yet according to Handy's own data referenced by the Attorney General's office, less than 10 percent managed to earn that much, with the median pay hovering below $27 per hour. Additionally, the platform's claim of "Paid Daily" was misleading, as workers typically had to wait seven days. To be paid sooner, they were forced to pay a fee, which was not disclosed in the company's advertising.
Samuel Levine, the Director of the FTC’s Bureau of Consumer Protection, criticized Handy for relying on "inflated and false earnings claims to lure workers onto its platform." He also noted inadequately disclosed fines and fees subtracted from workers' wages, as detailed by the Attorney General's office. For instance, workers would be fined when customers caused a no-show situation by failing to provide access, yet the platform would classify this as a "Pro No Show" and impose a fine unless a multi-step, somewhat invasive protocol was followed to the letter, often without prior knowledge of such procedure for the workers.
In light of these findings, the settlement agreement mandates that Handy pay $2.95 million to affected workers and requires that its advertisements accurately reflect hourly rates, fines, fees, and payment timings. Eligible workers will be informed of the amounts they are due as part of the settlement process.
