Wage Theft Determinations

Auditor O'Brien providing educational materials to a restaurant worker.

Read some of Denver Labor's wage theft determinations, issued after the wage theft team investigated issues related to underpayment or misclassification of workers in the City and County of Denver.

Worker and Glenarm Dining Services d/b/a Diamond Cabaret

On September 13th, 2024, the Denver Labor division of the Denver Auditor’s Office (“Denver Labor”) received credible information alleging that Glenarm Dining Services d/b/a Diamond Cabaret (“Diamond Cabaret” or the “Employer”) had stolen Worker’s wages and had taken adverse action against her for exercising her rights under the Denver Minimum Wage and Civil Wage Theft Ordinances (“MWO,” “DCWTO,” and together, the “Ordinances”). Upon receipt of this information, Denver Labor contacted Worker and, after carefully reviewing her allegations, opened an investigation.

On September 24th, 2024, Denver Labor sent to Diamond Cabaret a Notice of Investigation regarding these issues. Diamond Cabaret responded to the allegations on October 8th, 2024. Denver Labor requested additional information on October 25, 2024, and Diamond Cabaret provided a partial response on November 20, 2024.

Denver Labor considered all available evidence, provided Diamond Cabaret with a full opportunity to address the allegations, and now issues this Liability and Penalty Determination. If the Employer and Worker resolve this matter amicably within 14 days of the date of this Determination, Denver Labor will waive applicable penalties.

Read the determination(PDF, 235KB)

Subpoenas Order: Diamond Cabaret, PT's Showclub, and PT's Centerfold

While proactively investigating three strip clubs (Diamond Cabaret, PT’s Showclub, and PT’s Centerfold), Denver Labor issued subpoenas seeking a) copies of contracts between the clubs and dancers, b) contact information for dancers, and c) records of payments made to and received from dancers. The clubs challenged the subpoenas and claimed they were overly burdensome, sought confidential information, and fell outside of Denver Labor’s authority. After reviewing arguments and evidence, a hearing officer upheld Denver Labor’s authority to issue subpoenas; found the sought-after information was relevant; and determined that Denver Labor had provided adequate guarantees that confidential information would be kept private. The hearing officer also modified the subpoenas based on Denver Labor’s request.

Read the order(PDF, 323KB)

Active Enforcement Investigation into Garuda Labs, Inc. doing business as Instawork and Advantage Workforce Services, LLC

On May 28, 2024, the Denver Labor Division of the Denver Auditor’s Office (“Denver Labor” or the “Division”) opened an investigation into AWS. AWS is a staffing agency operating throughout the United States, including in Denver. But unlike most staffing firms, AWS broke nearly every applicable wage and hour law. It denied its employees basic information about their rights, all while systematically violating them. It stole an extraordinary amount of money from its low-income workers. It frequently failed to pay minimum wage and overtime. It routinely denied paid sick and safe leave to its employees, who overwhelmingly work in hospitality, food service, and warehousing roles — exactly the kinds of close-quarters jobs where sick leave is most important.

But there’s an additional wrinkle. In 2023, Denver Labor investigated AWS’ parent company for these exact same issues.

  • AWS committed thousands of legal violations. Frequently, flagrantly, and to great profit.

  • Instawork withheld an extraordinary amount of payroll data while being investigated — data that Denver Labor specifically requested and Instawork claimed, falsely, it provided. This information encompasses nearly 14,000 shifts and at least 1,467 employees.

  • The Employers are not, in any meaningful way, separate.

Read the determination overview(PDF, 145KB)

* Full determination can be requested by email at Auditor@DenverGov.org.

Employer and Worker Determination: Wage Theft, Retaliation, and Recordkeeping

Introduction

On July 3rd, 2023, “Worker” filed a credible wage complaint with the Denver Labor division of the Denver Auditor’s Office (“Denver Labor”). Worker alleged his former employer (the “Employer”) failed to pay him minimum wage in violation of Denver’s Civil Wage Theft Ordinance (“the Ordinance”).

On August 9th, 2023, Worker filed a credible retaliation complaint against Employer. Denver Labor opened investigations into these matters and provided notice to the Employer via first-class mail sent to its owner, (the “Owner”). Employer responded to the allegations, is represented by competent counsel, and had a full opportunity to present its evidence and defenses.

Denver Labor has considered all available evidence and now issues this Liability Determination. If this matter is not resolved within 14 days of the date of this Liability Determination, either through compliance or settlement, Denver Labor will conduct further investigation and issue a Penalty Determination.

Read the determination(PDF, 300KB)

Urban Peak Denver: Final Decision and Order of The Independent Hearing Officer

ORDER

"For the reasons stated herein, the Appellant’s request for dismissal of any prevailing wage determination – or, in the alternative, for an Order determining that “residential construction prevailing wages be issued” to the Mothership project – is hereby dismissed for lack of merit, and the Denver Labor wage determination of building classification is affirmed.

Urban Peak may seek review of the Decision and Order pursuant to the Prevailing Wage Ordinance, Sec. 20-76(g)(4), Rule 106(a)(4) of the Colorado Rules of Civil Procedure, and according to the time limits or other criteria stated therein."

Read the final determination(PDF, 1MB)

Next Wave Roofing: Decision And Order Of Hearing Officer On Cross Motions For A Final Decision Without A Hearing

Conclusions of Law and Order: Cross-Motions for a Decision without a Hearing

"MY LEGAL CONCLUSIONS ARE LARGELY EMBEDDED in the statement of the facts: I conclude that Next Wave failed to present enough evidence in the investigatory phase of this dispute to entitle it to a hearing in which it could attempt to establish, by a preponderance of the evidence, that Denver Labor erred in its determination that commissions were owed on seven of the eight jobs for which a claim is made. I will therefore deny Next Wave’s Motion, and grant Denver Labor’s Motion to the extent consistent with this conclusion.

Denver Labor is Ordered to recalculate its Determination within no more than 14 days from the date of this Decision and Order, excluding the Slack Job and updating the interest through the date of the recalculation, and to provide a figure for daily interest accruals through the date of payment."

Read the determination(PDF, 1MB)

Instawork misclassifies nearly 3,000 people as independent contractors

Garuda Labs, Inc. d/b/a Instawork (“Instawork” or the “Employer”) is an app-based staffing company operating in Denver and the surrounding area. Instawork provides workers—which it calls “Professionals” or “Pros”—for clients who operate in the hospitality, warehousing, and retail industries. These individuals work shifts directly for Instawork’s clients, filling a variety of frontline roles as servers, bartenders, dishwashers, line and prep cooks, general laborers, and housekeepers. 

Extensive investigation by Denver Labor reveals that Instawork has violated and is violating nearly every applicable wage and hour law. Since October of 2020, Instawork broke Denver’s minimum wage ordinance more than 1,000 times, failed to pay overtime more than 700 times, and did not provide nearly 3,000 workers with notice of their rights under Denver law.

Determination for Instawork Garuda Labs Inc.(PDF, 747KB)

Gigpro, Inc misclassifies and underpays 90 workers

Gigpro, Inc. (“Gigpro”) is an app-based staffing company operating in Denver and the surrounding area. Gigpro provides workers—called “Pros”—for clients in the hospitality industry, including hotels, restaurants, and caterers. Pros fill “gigs,” working a variety of frontline hospitality jobs as servers, bartenders, dishwashers, line and prep cooks, and housekeepers. See Ex. A, Column J. For both Gigpro and its clients, these workers are classified as independent contractors.

Extensive investigation by Denver Labor reveals that Gigpro’s model has violated nearly every applicable wage and hour law. Workers suffered minimum wage violations; did not receive the Auditor’s Office-required notice of rights; and have been subject to policies that prohibited them from engaging in certain protected activity. 

 As this determination more fully explains, in Denver alone Gigpro has violated Denver’s Civil Wage Theft Ordinance nearly 1,000 times since July 2022. Gigpro has violated HFWA more than four hundred fifty times by denying its workers the right to accrue paid sick leave based on time worked, and has unlawfully passed on the costs of workers’ compensation insurance to Pros by deducting $.38 per hour of work for Occupational Accident Insurance (OAI). Because the law defines paid sick leave as “wages” and prohibits employers from imposing on employees the costs of 2 workers’ compensation insurance, each of these acts also constitutes a violation of Denver’s Civil Wage Theft Ordinance.

Gigpro has rectified each of these specific problems and Denver Labor exercises its discretion to take no further action on them.

Determination for GigPro Inc.(PDF, 752KB)

Resources and Contact

Contact Us

If you have questions about Denver's Minimum Wage Ordinance or want to submit a wage complaint, please contact us by phone or by email. Denver Labor is here to help.

CALL: 720-913-WAGE (9243)
EMAIL: wagecomplaints@denvergov.org

 

Minimum Wage Enforcement
Learn about Civil Wage Theft 


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AUDITOR TIMOTHY O'BRIEN, CPA
Denver Auditor


Denver Auditor´s Office

201 W. Colfax Ave. #705 Denver, CO 80202
Emailauditor@denvergov.org
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