California Attorney General Xavier Becerra along with city attorneys from Los Angeles, San Diego and San Francisco are filing a lawsuit asserting Uber and Lyft gain an unfair and unlawful competitive advantage by misclassifying workers as independent contractors, they announced today. The lawsuit seeks $2,500 in penalties for each violation under the California Unfair Competition Law, and another $2,500 for violations against senior citizens or people with disabilities.
“The companies, we believe and argue are skirting their obligation to their workforce,” Becerra said in a call today. By skirting those obligations, Becerra said, Uber and Lyft are shifting the costs to California taxpayers.
Labor issues have been front and center amid the COVID-19 pandemic. Just yesterday, Amazon Web Services VP Tim Bray resigned from the company, citing Amazon’s firings of employees that were critical of the company. Meanwhile, gig workers have organized a number of strikes and protests to demand basic workplace protections like masks and gloves while they’re on the job.
But Uber and Lyft drivers have long been advocating for themselves. Last year, as both Uber and Lyft were gearing up to make their debuts on the public market, drivers staged a number of protests to demand better pay, benefits and the right to form a union.
We’ve reached out to Uber and Lyft and will update this story if we hear back.
This story is developing. Check back for updates.
