In a pivotal move for gig workers' rights, Denver-based GigSmart has taken decisive steps to reclassify the status of its workers, ensuring they receive the benefits and protections of employees under state law. This development follows a wage investigation by Denver Labor, which uncovered over $22,000 in wage violations. In response, GigSmart has agreed to not only pay back the workers but also overhaul its company policies to prevent future incidents.
According to the Denver Auditor's Office, the investigation prompted GigSmart to transition the way they to categorize their workers entirely. Starting April 2025, all jobs listed in Colorado on their app will be filled by employees rather than independent contractors, offering them minimum wage, overtime, paid sick leave, and further employment rights.
The initiative by GigSmart marks a substantial shift in the company's operation, fundamentally resetting the terms of engagement for more than 700 workers annually. Denver Auditor Timothy M. O’Brien, CPA, acknowledges the rarity of companies who willingly change their business models to align with employment laws, praising GigSmart's efforts: "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," as per Denver Auditor's Office.
GigSmart’s decision comes at a critical juncture in the debate about the rights of gig economy workers. Many such workers have been classified as independent contractors, a status that historically skirts around providing essential worker benefits. Under this new policy, GigSmart employees will now have access to workers' compensation insurance and unemployment insurance, a significant gain for those seeking job security and fair treatment. The changes were made possible by constructive discussions with Denver Labor, whose executive director, Matthew Fritz-Mauer, commended GigSmart for its proactive approach: "GigSmart came to the table with an end goal of making things right for workers and its clients," he said, as obtained by the Denver Auditor's Office.
