Labor & Employment Law Daily Wrap Up, LITIGATION NEWS, TRENDS—Angi Services to pay $2.95M for misleading workers about pay, (Jan 8, 2025)

By Brandi O. Brown, J.D.

Through its online platform, Angi Services inflated hourly rates in advertisements to lure workers, the New York Attorney General and FTC determined.

This week, the New York Attorney General’s office announced that, along with the Federal Trade Commission, it has successfully settled for $2.95 million claims that Angi Services, the operator of the online platform Handy Technologies, had misled workers about the hourly rates they would be paid for providing household services, along with other aspects of their remuneration.

Advertised inflated rates. An investigation found that Handy ran ads across New York that inflated the wages workers would earn on the app. In some instances, Handy paid workers nearly 50 percent less than the advertised hourly rate for a particular service. For example, in 2021 Handy ran an advertisement in approximately 100 regions that claimed Lawn Care Pros earn “up to $53/hr.” However, in nearly all of these regions, only 10 percent or fewer workers earned the advertised rate, with a median rate of pay that was less than $27 per hour.

In 2022, Handy ran advertisements in another area claiming that Lawn Care Pros “Earn at least $28/hour.” However, according to Handy’s own data, only approximately 25 percent of lawn care workers in that region earned the advertised rate.

Not paid daily. The ads also misleadingly stated that workers would be paid daily, although in reality, they were usually paid nearly a week after completing a job. To be paid sooner than the seven-day default, they had to pay Handy a $1.99 fee, which was not disclosed in Handy’s ads, and the only workers who were eligible to be paid daily were those who were “tenured,” meaning they had received $50 for a completed Handy job.

Additionally, the investigation determined that Handy failed to disclose the complicated, multi-step protocol workers were required to follow to avoid a fine when a customer failed to provide access to a job site or instructed a worker not to show up (a customer no-show).

In addition to the money it must pay to workers, Handy also has to ensure that its advertisements are accurate, and that fines and fees are properly disclosed.

“New York workers deserve to be paid what they are promised, when they are promised,” said Attorney General James. “Apps like Handy’s offer New Yorkers’ flexible job opportunities, but they cannot be allowed to lure workers with lies and false promises. Together with our partners at the FTC, we are holding Handy accountable and requiring the company to pay $2.95 million back to thousands of workers who were misled. My office will never hesitate to take action against companies that cheat hardworking New Yorkers.”

“Handy Technologies relied on inflated and false earnings claims to lure workers onto its platform. It then deducted inadequately disclosed fines and fees from their wages,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The order announced today puts a stop to these unlawful practices and ensures an honest marketplace for American workers.”

Companies: Angi Inc.; Handy Technologies, Inc.; Angi Services

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