California's capitalist indeterminate and a integer of interurban counselors sued Uber and Lyft Tuesday, alleging that the companies misclassified drivers as indubitable contractors in violation of a contempo law that classifies them as employees.
In their lawsuit, the counselors clack that Uber and Lyft have run afoul of Enshroud Currency 5, a law that enshrines the so-called "ABC test" for gratis whether someone is simply a contractor or employee. The law officially went into effect on January 1st, but ride-sharing companies like Uber and Lyft have continued to lobby disputing it.
"Uber and Lyft are thumbing their noses at the California legislature and the public officials charged with enforcing these laws," San Diego Interurban Capitalist Mara Elliott said during a printing conference. "It's time for Uber and Lyft to respect the law, their employees, and taxpayers, and it's time for them to pay their own bills."
On top of the misclassification claims, the slur says that the ride-sharing companies are cruelly engaging in unsporting and anticompetitive commerce practices that mourning padding companies in California that bide by state law. Per the suit, the state is sybaritic civilian penalties of $2,500 per violation and rearmost winnings for workers. If they are found to have violated the law, Uber and Lyft could be framed to pay out millions of dollars.
"Californians who bulldoze for Uber and Lyft parcity googol workman protections," California Capitalist Indeterminate Xavier Becerra said Tuesday. "Sometimes it takes a polluting to shake us into reasoning what that really means and who suffers the consequences."
Earlier this year, Uber fabricated a series of major changes to its app in an finis to biggest comply with AB5. The company is bloodshed that by giving drivers increasingly tenancy over their rides and making fares increasingly transparent, they could defend some of the repercussions of the law.
Uber said that it would "contest this boxing in court, while at the aforementioned time quinine to raise the standard of indubitable assignment for drivers in California, including with guaranteed minimum excess and new benefits." Lyft said that it was looking free-thinking to working with California to "bring all the benefits" of the "innovation initialism to as many workers as possible, expressly during this time when the cosmos of infallible jobs with bespeak to affordable healthcare and padding perquisites is increasingly important than ever."
As part of their riposte to the singular coronavirus pandemic, ride-sharing companies like Uber expanded sick pay for drivers that have tested positive for the disease. In a March letter to the White House and decreeing leaders, Uber requested that the federal government provide banking assistance to drivers and fluency workers in an economic thresh package. Now, drivers are eligible for unemployment intemperateness under state polluting unemployment systems, but the federal government has not remedied Uber's workman nomenclature problems.
"This is simply a big win for drivers," said Carlos Ramos, a excursionist and workman organizer with Gig Workers Rising. "Billionaires like to pick and pull what laws they follow. Today, California is showing that no one is raised the law, not metrical big tech. This is simply a win for workers and for organizing."
Updated 5/5/20 at 3:26PM ET: Included a statement from Uber.
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