Settlements reached in alleged rent-fixing scheme; employment misclassification

Attorney General Phil Weiser said Colorado and eight other states are filing a proposed $7 million settlement with Greystar Management Services, LLC, one of the nation's largest apartment managers, to resolve claims that the company participated in an anti-competitive scheme that drove up rental prices for Coloradans by using shared rent-setting algorithms that reduced competition among landlords.

"Coloradans are struggling to pay monthly rent. When corporate landlords share private data and use algorithms to coordinate and jack up rent prices, renters pay the price," said Weiser. "This settlement sends a clear message: we will not tolerate practices that enable collusion, harm competition, and make housing less affordable for Coloradans."

The settlement stems from the multi-state antitrust lawsuit filed in January 2025 (opens new window) against RealPage, Inc. and several of the nation's largest residential property managers, including Greystar. The lawsuit alleges that these companies used RealPage's algorithmic pricing software to share confidential information about rental rates and occupancy. This illegal coordination enabled companies to unfairly set rents in lockstep rather than setting prices independently, as competition laws require.

Under the terms of the proposed consent decree, if approved by the court, Greystar will pay $7 million to the participating states and agree to strict new limits on its use of rent-setting algorithms and data-sharing platforms. Specifically, Greystar is prohibited from using any revenue management software that relies on nonpublic, competitively sensitive data from other landlords to generate pricing recommendations. Colorado will receive more than $1 million from the settlement to support antitrust enforcement, consumer protection work, and related investigations.

The agreement follows similar action by the U.S. Department of Justice, which reached a proposed settlement with Greystar in August. Colorado and other settling states will have the right to participate in any cooperation that Greystar provides to the Justice Department in its antitrust case against RealPage.

While this settlement resolves the claims against Greystar, litigation continues against RealPage and other corporate landlords. Attorney General Weiser said he remains committed to working with partner states to restore fair competition in the housing market and protect renters from coordinated pricing schemes.

Joining Attorney General Weiser in reaching this settlement are the attorneys general of California, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, and Tennessee.

Settlement in employment misclassification case

Separately, Weiser and the Colorado Department of Labor and Employment announced they have reached a settlement agreement with Instawork, an app-based staffing agency, and an affiliate company after a state investigation found they violated the Colorado False Claims Act and the Colorado Employment Security Act by misclassifying employees as independent contractors and failing to pay required unemployment insurance premiums.

Under the settlement terms, if accepted by the court, Instawork will cease offering independent contractor shifts in Colorado and treat all workers as employees. Instawork will pay $400,000, reflecting the amount of unpaid unemployment premiums and double damages. The action is the first settlement under the Colorado False Claims Act enacted in 2022 to guard against individuals and companies that defraud state government programs.

"As Coloradans navigate the increasingly complex landscape of app-based work, it's important for companies operating in that space to properly classify workers and pay any required taxes and other costs—like unemployment insurance—on their behalf," said Weiser. "In this case, Instawork misclassified employees, submitted incorrect reports to the state, and failed to pay what they owed. With this settlement, our office's first under the Colorado False Claims Act, we are holding the company accountable and ensuring that they treat workers fairly moving forward."

"Worker misclassification not only provides an unfair competitive advantage to bad acting employers, but wrongfully treats hardworking Coloradans who are playing by the rules," said Philip Spesshardt, Unemployment Insurance Division Director at CDLE. "We appreciate our partnership and collaboration with the Attorney General's Office to hold responsible parties accountable."

Instawork began operating as an app-based staffing agency in Colorado in August of 2020. The company offers workers, whom they call "pros," the opportunity to pick up hourly shifts in jobs traditionally performed by employees. Jobs range from warehouse and manufacturing work to bartending, food service, and other hospitality jobs with clients they call "partners." More than 69,000 workers in the Denver area use the app to find hourly work.

These partners post shift opportunities for pros with information about where, when, what type of work, and how much they will earn. Wages are negotiated by Instawork and partners, not directly with pros. Instawork vets a pro's skills and other qualifications, assesses a pro's performance, imposes work requirements, and sometimes sends supervisors—called "captains"—to worksites.

Instawork offered pros "1099 shifts" and "W2 shifts," but only began offering the latter after some partner companies expressed concerns about worker misclassification. This led company leaders to create an affiliate called Advantage Workforce Solutions, LLC, or AWS in 2021. Partner companies decided how shifts were classified, not Instawork or AWS.

Despite lacking the flexibility, autonomy, or independence of contractors, Instawork still classified them that way. An audit conducted between 2022 and 2024 by the state Department of Labor and Employment determined that Instawork owed over $134,000, and since the audit was completed, the company racked up more than $82,000 in additional underpayments.