WorkWhile to pay $7.2 million and reclassify gig workers as employees
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WorkWhile, a company providing short-term shifts through a mobile app, agreed to a $7.2 million settlement to resolve a lawsuit filed by the San Francisco City Attorney.
The agreement requires the company to treat its workers as employees rather than independent contractors starting January 1. This change provides workers with legal protections such as paid breaks, sick pay, and workplace safety shields.
The lawsuit, initiated by San Francisco City Attorney David Chiu in June 2024, alleged that the company misclassified workers in hospitality, food, and warehouse roles. By labeling these workers as independent contractors, the city argued that WorkWhile shifted the costs of labor protections onto the workers themselves. The settlement includes $2.3 million for specific claims, which covers $2.1 million in restitution for drivers and $200,000 in city penalties. The company previously faced separate legal actions regarding its labor practices.
In December 2024, a court issued a judgment requiring WorkWhile to pay $1 million to non-driver workers. A subsequent settlement in January involved $4.1 million for delivery drivers who worked shifts through September 5, 2025, plus $400,000 in penalties. San Francisco officials stated that these actions aim to ensure gig companies follow California labor laws instead of avoiding them to reduce costs.
