Gig Companies Face California Crackdowns That Uber, Lyft Escape

The winning ballot initiative that carved out rideshare and delivery companies including Uber Technologies Inc. and Lyft Inc. from California’s strict worker-status law hasn’t stopped crackdowns on other app-based businesses, raising questions about whether platforms for on-demand handymen, dog walkers and car mechanics have viable business models.

The San Francisco District Attorney last month sued Handy Technologies Inc. for allegedly misclassifying its workers as independent contractors, seeking civil penalties for each alleged labor code violation on behalf of the company’s more than 27,000 cleaners and handymen in the state.

Taskrabbit Inc., Rover Inc., and Lime scooters have ...