“Gig workers are employees, Denver auditor says as city seeks more than $1 million in penalties”

More than 3,000 temporary workers serving food or cleaning hotel rooms are employees, not gig workers, and should be treated as such, the Denver Auditor said in a decision that seeks more than $1 million in penalties against two staffing agencies.

Instawork and Gigpro, which specialize in hourly workers for the restaurant and hospitality industries, call the workers “independent contractors,” but the jobs that the companies fill run counter to that term and fall under what the state law defines as employees.

The companies also were accused of numerous unpaid wage and overtime violations, and failing to provide sick leave…

San Francisco-based Instawork received the brunt of the fines — more than $820,000, most of which came from 13,195 violations of failing to provide sick leave. They also must pay another $275,516 in restitution to nearly 3,000 workers. Gigpro faces about $50,000 in fines and restitution to about 90 workers. The companies were ordered to cease and desist from misclassifying workers and have 30 days to comply…

…Instawork’s head of strategic communications, said, “Instawork is coordinating with the City of Denver to address an incomplete and non-final administrative determination issued by Denver Labor…