California’s suit against Uber and Lyft says the companies have illegally treated drivers as independent contractors, depriving them of benefits.
California sued Uber and Lyft on Tuesday, alleging that the ride-hailing companies have illegally treated their drivers as independent contractors, depriving them of worker protections and benefits such as minimum wage and unemployment insurance.
The lawsuit, brought by state Atty. Gen. Xavier Becerra and the city attorneys of Los Angeles, San Diego and San Francisco, seeks restitution for unpaid wages it says are owed to drivers, and it requests that the court force the companies to immediately classify their drivers as employees.
Filed in the Superior Court of San Francisco, the suit also alleges that by classifying the drivers as independent contractors, the companies have failed to pay state and local payroll taxes that are used to fund welfare programs.
Lyft said in a statement that it is “looking forward to working with the Attorney General and mayors across the state to bring all the benefits of California’s innovation economy to as many workers as possible, especially during this time when the creation of good jobs with access to affordable healthcare and other benefits is more important than ever.
