Margarita M. Phillips 
Demiraiakian, who takes care of furniture assembly and DIY work, says she was once tasked with what was supposed to be a small tree stump removal only to find it would require much more powerful tools. that she had brought – information that she said no. communicated to her until she got to work. After attempting to remove the stump anyway, she not only left with a collection of broken tools – which she estimates cost her $ 500 and should replace herself – but her salary was suspended for having left work earlier. (A spokesperson for Handy said Demiraiakian was paid in full for the work in question. Asked about the discrepancy with Demiraiakian’s account, which she also submitted as part of a legal statement, said -speak declined to comment.)
“If the money gets low I know I can get a job or two with Handy,†she told CNN Business. “I know not to expect much.”
While Handy hasn’t received as much attention as its on-demand peers like Uber, Lyft, and DoorDash, it emerged around the same time and has a similar business model. Founded in 2012 and later acquired by Angi, the parent company of Angie’s List (now also known as Angi), Handy relies on a workforce of independent contractors in hundreds of cities across the United States. United. As contractors, these workers largely lack the basic legal protections that employees are entitled to, including minimum wage, workers’ compensation, paid sick leave, and harassment prevention training. sexual.
Now, in the latest example of a larger US assessment of the odd-job economy, several major cities are challenging the way Handy classifies and treats workers like Demiraiakian.
In a letter this week to Oisin Hanrahan, co-founder of Handy and CEO of Angi, Employment law enforcement officials in Philadelphia, Seattle and Chicago write that it is “very likely” that the company wrongly classifies its workers as independent contractors, allowing it to avoid certain responsibilities that she would have as an employer under existing labor laws, according to a copy of the shared letter. first with CNN Business. It is signed by Andrew Fox and Steven Marchese, directors of the Chicago and Seattle labor standards offices, respectively, and by Amanda Shimko, director of the Philadelphia workers’ protection office.
A key element of this “economic realities” test is the degree of control a company has over workers. The letter claims Handy controls everything from what information he shares with workers about a job to how workers communicate. with customers to compensation, including the imposition of various fees to penalize workers.
In a statement to CNN Business, a spokesperson for Handy said its employees, whom the company describes as pros, are “correctly classified on one or the other test.”
“Professionals choose if, when, where, how often, for whom to provide their services, and are not obligated to accept a specific number of jobs or even work at all through the platform,†the statement said. “Pros use the Handy platform to supplement their income and find jobs that fit their schedules, including other jobs and personal obligations.â€
Labor officials have also expressed concerns outside of the issue of worker classification, writing that they believe Handy has flouted other local regulations that offer protections to workers, such as exploitation as a worker. essential business in some markets during part of the pandemic, even if it did not meet requirements. as not respecting the various local protections for domestic workers. (Handy’s spokesperson said it was “operating in full compliance with public health rules and regulations in all markets during the pandemic.”)
An industry under surveillance
Fox, the director of the Chicago Bureau of Labor Standards, said in a statement to CNN Business: “We have worked hard in Chicago to ensure that all of our workers receive a living wage and enjoy stability, fairness. and the reliability they deserve. ”
He said his office was “proud to join our counterparts in calling on Handy to step up and give his employees the protections they are guaranteed here in Chicago and across the country.” The letter outlines Handy’s requests for additional information on its business practices.
With the move, Handy is now under close scrutiny in five of its top markets – as measured by the number of cleaners it works with in those areas – because of its business model, according to Jenny Montoya Tansey, director of public policy. Draft rights. A legal nonprofit, the Public Rights Project works with state and local governments, including Philadelphia, Seattle, and Chicago, to step up enforcement of possible labor rights violations.
In March, district attorneys in San Francisco and Los Angeles filed a lawsuit against Handy for alleged misclassification of his employees as AB-5. Demiraiakian, along with several other workers, filed a statement in support of the lawsuit this month regarding his experience with the case. Handy’s spokesperson said the costume was “categorically false and demonstrates a fundamental misunderstanding of Handy’s business” and that the company “will aggressively combat this misguided action”. The costume is in progress.
“ We focused on Handy ”
Handy’s general counsel Jennifer Bishop said in a statement to CNN Business that she had increased training for her support team on responding to harassment reports. “Whenever a Pro is the victim of harassment, we encourage that Pro to leave the site immediately and report it to our team. The Pro is paid in full, compensated for travel expenses from the site of the incident and gets a call from our specially trained response, “Bishop said in a statement.
According to Montoya Tansey, a number of factors led Handy to be specifically examined more closely, including an increase in the organization of domestic workers and new local labor protections for domestic workers.
“We started tracking the problem of misclassifying low-wage workers a few years ago when AB-5 was advancing through the California legislature,†said Montoya Tansey, adding that home services were one of the areas they began to look closely at. came to the implementation.
“Pretty quickly we focused on Handy … because they seemed to have a lot more control over their workers than some of the other companies in the market,” she said, stressing that this is important because the factor control is used to help determine if workers are properly classified.
