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Chiu secures $2.1 million deal requiring gig economy company to reclassify workers as employees
SAN FRANCISCO (February 22, 2024) — San Francisco City Attorney David Chiu announced today that he has reached a groundbreaking agreement with Qwick that requires the company to convert all of its misclassified California workers to employees, ensuring they are eligible for the full range of employee benefits and protections. In 2023, Chiu sued Qwick, a gig economy company that provides on-demand staffing to the hospitality industry, for depriving workers of critical employment protections by misclassifying them as independent contractors instead of employees.
Under the proposed Final Judgment and Injunction, submitted to the San Francisco Superior Court yesterday for approval, Qwick must pay its California workers $1.5 million in restitution and provide workers that stay on as employees a bank of accrued sick leave hours valued at up to $350,000. Qwick will also pay $250,000 to the City in civil penalties. If the settlement is approved, City Attorney Chiu will have secured the first injunction in California requiring a gig economy staffing company to permanently reclassify thousands of workers.
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Climate ChangeThe San Francisco City Attorney and Oakland City Attorney Barbara J. Parker filed separate lawsuits on behalf of their respective cities against the top five oil and gas companies, asking the courts to hold them responsible for the costs of the infrastructure necessary to protect their cities from the consequences of climate change caused by their massive production of fossil fuels. |
Reproductive RightsThe City Attorney’s Office has worked with public and private partners to defend access to reproductive healthcare and ensure all people understand that abortion remains safe and legal in California. We worked with our City clients to launch a webpage to help people navigate abortion care in San Francisco. Learn more here. |
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Gun SafetyFive online suppliers that had been flouting both state and San Francisco law by selling illegal large-capacity magazines as “repair kits” to customers in California have agreed to a wide-ranging injunction that compels them to follow the law. The settlement agreement improves safety in California communities and ensures that rogue companies comply with the law. |
Affordable HousingIn efforts to combat the affordable housing crisis in San Francisco, the City Attorney’s Office has taken broad actions ranging from filing lawsuits against unscrupulous slumlords and landowners like Academy of Art University to cracking down on affordable housing fraudsters. |
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