California sues Uber and Lyft for allegedly misclassifying drivers

The businesses have promised to compensate drivers both contaminated by COVID-19 or quarantined by well being officers out of precaution, however their methods are exceptions that don’t cowl separate well being points or different prices. In addition they don’t account for payroll taxes.

A Lyft spokesperson informed Engadget the corporate was “wanting ahead” to working with the Legal professional Basic and mayors on bringing the “advantages” of gig economic system corporations to Californians. It’s in a roundabout way indicating the way it will reply to the lawsuit, then. Uber was extra vocal in its opposition, saying it might “contest” the lawsuit and claimed this could make it “more durable” for individuals to begin driving. You’ll be able to learn the complete statements under.

Up to now, Uber and Lyft have fought bitterly towards AB5 and different makes an attempt to deal with their drivers as workers. They’ve insisted that their contractor strategy is important to supply flexibility and have argued for an in-between possibility that lets them maintain drivers as contractors however theoretically presents extra of a security internet. Uber has gone as far as to preemptively sue the state. The attorneys don’t purchase the argument, nonetheless. San Francisco Metropolis Legal professional Dennis Herrera stated the businesses had been “promoting a lie,” and that it was solely attainable for drivers to decide on their very own hours and areas whereas receiving worker advantages. Uber and Lyft “merely don’t wish to do it,” Herrera added.

It’s far too quickly to say how the lawsuit will pan out. There’s little doubt that it comes at a troublesome second for Uber and Lyft, although. Each corporations are reeling from the pandemic as a result of a plunge in ridership, main Uber to drag its Eats service out of a number of international locations and Lyft to put off almost 1,000 individuals. They may discover themselves paying significantly extra to assist California drivers if authorities attorneys succeed. On the similar time, there’s little doubt that the brand new coronavirus has highlighted the dearth of protections for gig economic system employees of every kind — they’ve few choices if one thing goes awry.

“At a time when California’s economic system is in disaster with 4 million individuals out of labor, we have to make it simpler, not more durable, for individuals to shortly begin incomes. We are going to contest this motion in court docket, whereas on the similar time pushing to lift the usual of impartial work for drivers in California, together with with assured minimal earnings and new advantages.” Uber

“We’re wanting ahead to working with the Legal professional Basic and mayors throughout the state to deliver all the advantages of California’s innovation economic system to as many employees as attainable, particularly throughout this time when the creation of fine jobs with entry to inexpensive healthcare and different advantages is extra essential than ever.” Lyft

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