On this file picture taken on April 16, 2020, a protestor shows an indication as Uber and Lyft drivers with Rideshare Drivers United and the Transport Staff Union of America put together to conduct a caravan protest exterior the California Labor Commissioners workplace amidst the coronavirus pandemic in Los Angeles, California. MARIO TAMA / GETTY IMAGES NORTH AMERICA / AFP
California on Tuesday sued rideshare operators Uber and Lyft for “misclassifying” drivers as contractors as a substitute of workers in violation of a state legislation.
The go well with, joined by the state’s massive municipalities, seeks to require the businesses to compensate drivers and pay penalties that might complete within the a whole lot of tens of millions of dollars.
“California has ground rules with rights and protections for workers and their employers,” lawyer common Xavier Becerra mentioned in a launch.
“We intend to make sure that Uber and Lyft play by the rules.”
The go well with will check a legislation that took impact in California this 12 months.
The cities of San Francisco, Los Angeles and San Diego joined the state within the criticism.
Officers mentioned the classification necessities wouldn’t stop the ride-hailing operators to supply versatile work preparations to drivers.
“There is no legal reason why Uber and Lyft can’t have a vast pool of employees who decide for themselves when and where they work — exactly as drivers do now,” San Francisco metropolis lawyer Dennis Herrera mentioned in a launch.
“These companies simply don’t want to do it. Uber and Lyft are selling a lie. They are lying to the public and lying to their drivers.”
Experience-hailing big Uber and supply firm Postmates in December challenged the brand new legislation that requires gig-economy freelancers to be thought of workers as unconstitutional.
The laws, referred to as Meeting Invoice 5, implies that — underneath sure circumstances — unbiased contractors are categorised as workers to be lined underneath minimal wage and profit guidelines.
This would come with drivers for Uber, Lyft, Postmates and different web platforms that use apps to allow folks with automobiles to offer rides or make deliveries to these prepared to pay for such providers.
Uber was adamant final 12 months that it could oppose any change of standing for its drivers, which might add to its prices.
Uber and its American rival Lyft have every put apart 30 million dollars to arrange a referendum, allowed underneath Californian legislation, to exchange the laws with a compromise on social rights.
Drivers are divided between those that need the identical safety as workers and people who need the pliability of with the ability to select the hours they work.