CHICAGO – Attorney General Kwame Raoul today announced his office reached an approximately $95,000 settlement with GigSmart Inc. (GigSmart), resolving allegations the company misclassified workers who were placed in temporary labor positions via the company’s online platform.
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“Day and temporary workers are especially vulnerable to illegal labor practices that rob workers of workplace protections and pay,” Raoul said. “Every worker – regardless of the industry in which they are employed or if they are using an app to obtain employment – have the right to receive the wages they are owed. My office will continue to investigate complaints of unlawful and unfair labor practices and will not stop working to protect the rights of all Illinois workers.”
An investigation Raoul’s office conducted revealed workers placed through GigSmart’s online platform were misclassified as independent contractors and paid a regular hourly rate without premiums for overtime hours worked. Some workers did not receive Illinois’ minimum wage. Workers were also not paid a mandatory four-hour minimum when they were placed in jobs that ended up being canceled. In addition, GigSmart failed to ensure that workers were employed by a registered day and temporary labor service provider.
The Illinois Minimum Wage Law requires employees to be paid Illinois’ minimum wage and an overtime premium of 150% of their regular hourly wages for each hour worked over 40 in a single workweek. The Illinois Day and Temporary Labor Services Act requires companies providing day and temporary labor services to register with the Illinois Department of Labor and to pay workers for at least four hours of work when their temporary job placements are canceled and they are not reassigned.
Attorney General Raoul’s settlement allows 479 eligible employees to recover unpaid wages that GigSmart should have paid years ago, including all penalties and interest that accrued under state law. Additionally, the settlement ensures that future workers who receive assignments through GigSmart’s platform are classified as employees and enjoy all the protections afforded by the Day and Temporary Labor Services Act, including unemployment insurance, workers’ compensation insurance, and the right to receive minimum wage, overtime wages and four-hour minimum pay.
Attorney General Raoul’s Workplace Rights Bureau protects and advances the employment rights of all Illinois residents, particularly the state’s most vulnerable residents and immigrant populations. The bureau investigates and litigates cases involving serious or persistent wage law violations or other significant employment practices, and monitors and proposes legislation concerning labor and employment issues.
Attorney General Raoul encourages workers who have concerns about wage and hour violations to call his Workplace Rights Hotline, or visit the office’s website to file a complaint online.
Assistant Attorney General Javier Castro handled the case for Raoul’s Workplace Rights Bureau.
