California Sues Uber, Lyft For Classifying Drivers As 'Contractors'
LOS ANGELES (CBSLA) — California and several cities, including Los Angeles, are suing rideshare companies Uber and Lyft.
The lawsuit announced by Attorney General Xavier Becerra and city attorneys from Los Angeles, San Diego and San Francisco allege the two rideshare giants are misclassifying their drivers as "contractors," depriving them of workplace protections like minimum wage and overtime and access to paid sick leave, disability insurance and unemployment.
"Sometimes it takes a pandemic to shake us into realizing what that really means and who suffers the consequences," Becerra said in a statement. "Uber and Lyft drivers who contract the coronavirus or lose their job quickly realize what they're missing."
Without these protections, taxpayers end up footing the bill for these "contractors" driving for Uber and Lyft.
A release announcing the lawsuit says nothing prevents Uber and Lyft from properly classifying their drivers as employees.
Lyft says it looks forward to working with the attorney general and mayors, while Uber says it will "contest this action in court."
