The office of San Francisco City Attorney David Chiu has won a case against a national company in the hospitality industry that allegedly misclassified its on-demand staffing in California — also known as “gig workers” — under state law.  

Qwick Inc. provides freelance staffing to businesses in the hospitality industry, such as catering, bartending and restaurant work. Chiu argued that Qwick had been classifying these workers as independent contractors, despite a law in California that says gig workers are entitled to the same perks and protections as regular employees, such as sick leave, unemployment and workers compensation. 

The agreement, which Chiu’s office says is the first of its kind, orders Qwick to pay $1.5 million in restitution to its staffers in the state and provide workers that stay on as employees a bank of accrued sick leave. A fine of $250,000 is also being imposed against the company.

“This proposed judgment puts money back into the pockets of workers and ensures that they will have the full complement of employee rights and benefits moving forward,” Chiu said Thursday in a statement released by his office. “It also ensures that law-abiding staffing companies will no longer be at a competitive disadvantage.” 

Chiu’s suit had also invoked California’s Unfair Competition Law.  

This proposed judgment puts money back into the pockets of workers and ensures that they will have the full complement of employee rights and benefits moving forward. It also ensures that law-abiding staffing companies will no longer be at a competitive disadvantage. SF City Attorney David chiu

Assembly Bill 5 took effect in 2020 and has a caveat that any gig worker who steps in to perform a job alongside regular employees, performing the same functions and under the same “control” as regular workers, cannot be classified as an independent contractor. 

Chiu argued that due to Qwick classifying its staff as independent contractors, the gig workers were denied overtime pay, paid sick leave, health care expenditures and paid family leave between 2019 and 2024. 

Dana Barbeau, described as the “chief people officer” at Qwick, said their freelancers are “at the heart” of what they do and the company is committed to honoring the agreement with San Francisco.

“The future of work is evolving, and our goal is to lead in that evolution by providing innovative opportunities that empower our freelancers,” Barbeau wrote in an email Thursday. “We are committed to making continuous improvements to ensure that Qwick remains a platform where freelancers and business partners can thrive and succeed.”

Chiu’s office will monitor Qwick’s compliance with the agreement through 2026.

Katy St. Clair got her start in journalism by working in the classifieds department at the East Bay Express during the height of alt weeklies, then sweet talked her way into becoming staff writer, submissions editor, and music editor. She has been a columnist in the East Bay Express, SF Weekly, and the San Francisco Examiner. Starting in 2015, she begrudgingly scaled the inverted pyramid at dailies such as the Vallejo Times-Herald, The Vacaville Reporter, and the Daily Republic. She has her own independent news site and blog that covers the delightfully dysfunctional town of Vallejo, California, where she also collaborates with the investigative team at Open Vallejo. A passionate advocate for people with developmental disabilities, she serves on both the Board of the Arc of Solano and the Arc of California. She lives in Vallejo.