San Francisco's latest crackdown on gig-work labor practices ended with another costly payout. WorkWhile, a company that offers short-term shifts through an app, must pay $7.2 million to workers by 2029 and begin treating them as employees instead of contractors.
Here's what to know
The agreement covers claims that drivers were misclassified. WorkWhile agreed to pay $2.3 million on that front, including $2.1 million in restitution for drivers and $200,000 in city penalties, according to Mission Local. It did not admit wrongdoing.
The agreement ends a lawsuit filed in June 2024 by San Francisco City Attorney David Chiu. His office said WorkWhile treated workers as independent contractors instead of employees, leaving them without the wage and hour protections employees receive.
Starting Jan. 1, WorkWhile must classify all its workers as employees, per Mission Local. That status change brings protections and benefits such as paid breaks, sick pay, and workplace safety shields.
More background
San Francisco alleged that people working non-driving shifts through the app in hospitality, food, and warehouse jobs were denied benefits and other protections.
The city won a partial judgment and injunction in December 2024, which required WorkWhile to pay $1 million to those non-driver workers, Mission Local reported.
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Another partial settlement came in January and applied to some delivery drivers. WorkWhile agreed to pay $4.1 million to drivers who had worked shifts through Sept. 5, 2025, along with $400,000 in penalties to the city attorney's office.
The fight was over who absorbs the cost of protections such as paid breaks, sick leave, and wage safeguards. The city argued those burdens were pushed onto workers.
What's being done?
San Francisco has made enforcement in this area a priority. Chiu has expanded a worker-protection unit with several attorneys, and his office has secured settlements with companies such as Lyft and GigSmart over alleged labor-law violations, Mission Local noted.
In this case, the city relied on litigation, an approach that delivered compensation for affected workers and also required the company to change how it classifies workers in the future.
The agreement covers what San Francisco says was a business practice that shifted legal obligations away from the company and onto workers.
"With this settlement, WorkWhile will no longer deny its gig workers the wages and benefits they are owed," Chiu said in a statement. "California labor laws are clear, and gig companies cannot sidestep them to shortchange workers."
Where can I learn more?
For a broader look at worker protections, these stories examine changes in California and beyond. They cover sick leave, heat safeguards, and labor groups pushing for stronger protections.
• Gov. Newsom signed new paid sick day protections for farmworkers.
• Farm workers facing extreme heat kept pressing for stronger outdoor protections.
• Officials rescinded crucial worker protections after calling the rules burdensome and confusing.
• In Canada, labor groups said blue-collar workers remain at risk as climate pressures grow.
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