California sues Uber and Lyft, alleging drivers are misclassified

The state of California is suing Uber and Lyft. Attorney General Xavier Becerra filed a lawsuit against the two hail fighting companies on Tuesday allegedly They have “exploited hundreds of thousands of California workers” by classifying their drivers as independent contractors rather than employees.

“It is these vulnerable drivers who are the losers in this entire process,” Becerra said during a press interview with reporters on Tuesday. “We believe that innovation doesn’t require you to abuse employees.”

The lawsuit alleges that Uber and Lyft violated a California law is called AB 5This is to ensure that workers have adequate occupational health and safety by being classified as workers. The lawsuit was filed by the Attorney General’s Office with the San Francisco County Superior Court in collaboration with San Francisco, Los Angeles and San Diego City Prosecutors.

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The debate about the performance of gig workers has been raging for years. Already in 2013, several lawsuits were filed against Uber, Lyft and other gig economy companies. But now that the novel coronavirus pandemic has rocked society, this debate has intensified.

Gig workers are considered indispensable workers, which means that they can continue to work as the virus spreads. Because they are still out there, delivering food to quarantined people, and transporting medical personnel to and from the hospital, there is a higher risk that they will become infected with COVID-19. According to the companies, thousands of Uber and Lyft drivers are infected or exposed to the corona virus and at least five drivers have died from the disease.

A Uber spokesman said the company plans to fight the lawsuit. “At a time when the California economy is in crisis with four million unemployed people, we have to make it easier and not harder for people to make money quickly,” he said.

A Lyft spokesman said the company would work with government lawmakers “to provide as many workers as possible with all the benefits of the California innovation economy.”

As independent contractors, Uber and Lyft drivers are not entitled to the same benefits as employees. You have no company health insurance, sick leave, family vacation, disability or employee compensation. Both Uber and Lyft have offered drivers two weeks’ sick leave if they are infected or exposed to COVID-19, but CNET has determined this This payment can be difficult to get.

California’s lawsuit against Uber and Lyft aims to stop the two companies from classifying their drivers as independent contractors. The lawsuit alleges that companies using such a classification “gain an unfair and illegal competitive advantage” and avoid paying government wage taxes.

“California has basic rules with rights and protection for workers and their employers,” Becerra said. “We want to make sure Uber and Lyft abide by the rules.”

Uber and Lyft are part of a coalition of gig economy companies Sponsorship of an election initiative in NovemberBoth companies have spent $ 30 million to support the measure, known as the “App-based Driver and Service Protection Law,” and both said they will spend more on the campaign if needed.

California lawmakers raised awareness of the election initiative during Tuesday’s press conference, saying it made their lawsuit all the more important.

“They will go to the poll and spend tens of millions of dollars to overturn the will of the California legislature,” said San Francisco City Attorney Dennis Herrera. “The time for predatory behavior must end.”

The lawsuit aims to punish companies with a fine of up to $ 2,500 for each violation under California law. If a court decides in favor of the state, Uber and Lyft California could owe substantial sums of money for these penalties, along with additional compensation for local drivers.