California AG Becerra files lawsuit against Uber and Lyft, alleging that they have evaded state law by declaring their workers to be contractors rather than employees.
Uber also issued a statement: “At a time when California’s economy is in crisis with four million people out of work, we need to make it easier, not harder, for people to quickly start earning. We will contest this action in court, while at the same time pushing to raise the standard of independent work for drivers in California, including with guaranteed minimum earnings and new benefits.
“Uber and Lyft claim that properly classifying drivers as employees is incompatible with flexibility. That is a lie,” said San Francisco city attorney Dennis Herrera. “There is no legal reason why Uber and Lyft can’t have a vast pool of employees who decide for themselves when and where they work – exactly as drivers do now. These companies simply don’t want to do it. Uber and Lyft are selling a lie. They are lying to the public and lying to their drivers.
For years, the rival companies have touted the ad hoc work schedule as an attractive perk for drivers. However, one of the major downsides has been that drivers are on the hook for incurring numerous work expenses, including gas, car maintenance, insurance and more.
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