Homejoy Shuts Down Amid Lawsuit Over Worker Misclassification

The recent spate of worker misclassification lawsuits against on-demand service companies appears to have claimed its first victim, with home-cleaning company Homejoy announcing Friday that it planned to close.

The San Francisco company was slapped with a class-action lawsuit in March in which plaintiff J.C. Iglesias alleged that Homejoy misclassified its cleaners as independent contractors, depriving them of reimbursements and overtime wages.

Although a ruling has not been handed down, Homejoy Chief Executive Adora Cheung told tech site Re-Code that the lawsuit was a “deciding factor” in shutting down the company. Homejoy’s last day of operation will be July 31.

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