[legutierr]

If Homejoy cleaners were going to be classified as employees, entitled to minimum wage and subject to being verified as citizens or legal residents, then this seems like the right move. I can't see how they would ever be able to compete on price with all of the independent outfits out there that employ undocumented workers.

It's one thing to sell your services at a loss while you're growing. In the home-cleaning business, though, there will never be a shortage of undocumented immigrants willing to work for less than minimum wage, quite possibly at a higher quality level. There would be no way to ever raise prices to fully cover costs without immediately losing out to that competition.