This article was published on July 17, 2015

Homejoy shutting down as it draws fire in court over how employees are classified


Homejoy shutting down as it draws fire in court over how employees are classified

Homejoy is shutting down. The house-cleaning startup decided to close up shop after a series of labor lawsuits scared potential funding partners off.

Speaking to Re/code, Homejoy CEO Adora Cheung said “a lot of this is unfortunate timing,” but noted the lawsuits were the “deciding factor” to shut the company down.

Like Uber, Homejoy faced pushback from contractors who felt they were being treated more like employees. The company is currently fighting four different lawsuits on whether or not those working for it should be contractors or employees.

Unlike Uber, Homejoy didn’t have the bankroll to withstand incoming legal fire.

In seeking new funding, Homejoy saw resistance based on those lawsuits. Though it was able to secure some cash, Cheung said “we declined those investments because it wasn’t enough and we wanted to stay true to our vision.”

The <3 of EU tech

The latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!

Homejoy Shuts Down After Battling Worker Classification Lawsuits [Re/code]

Read next: Homejoy expands beyond cleaning into other home services, kicking off in San Francisco and San Jose

Get the TNW newsletter

Get the most important tech news in your inbox each week.