Attorney General Phil Weiser and the Colorado Department of Labor and Employment announced today that they have reached a settlement agreement with Instawork, an app-based staffing agency, and an affiliate company after a state investigation found they violated the Colorado False Claims Act and the Colorado Employment Security Act by misclassifying employees as independent contractors and failing to pay required unemployment insurance premiums.
“As Coloradans navigate the increasingly complex landscape of app-based work, it’s important for companies operating in that space to properly classify workers and pay any required taxes and other costs—like unemployment insurance—on their behalf,” said Attorney General Weiser. “In this case, Instawork misclassified employees, submitted incorrect reports to the state, and failed to pay what they owed. With this settlement, our office’s first under the Colorado False Claims Act, we are holding the company accountable and ensuring that they treat workers fairly moving forward.”