By: Eddie Hettel
On May 5, 2020, the People of the State of California filed a lawsuit for injunctive relief, restitution, and penalties against Uber Technologies, Inc., Lyft Inc., and 50 individuals whose identities remain private. The suit alleges that the defendants made calculated business decisions to misclassify their on-demand drivers as independent contractors rather than employees and continue to do so in violation of California law.
By classifying their workers as independent contractors, Uber and Lyft evade workplace standards and requirements such as minimum wages, overtime premium pay, reimbursement for business expenses, workers’ compensation coverage for on-the-job injuries, paid sick leave, and wage replacement programs like disability insurance and paid family leave.
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