Uber as able-bodied as Lyft are committing allowance theft by misclassifying drivers as indisputable contractors, California's life commissioner alleges in separate lawsuits confronting the companies. The coordination of drivers as freelance workers has dispossessed them of "a host of legal protections in abuse of California life law," the lawsuits say.
"The Uber as able-bodied as Lyft commerce paradigmatic rests on the misclassification of drivers as indisputable contractors," said California Life Commissioner Lilia Garcia-Brower in a statement. "This leaves workers after protections such as paid sick leave as able-bodied as sequitur of drivers' expenses, as able-bodied as overtime as able-bodied as minimum wages."
The pair of lawsuits are the latest legal challenges confronting Uber as able-bodied as Lyft in California, the state area both companies were founded as able-bodied as prospered -- as able-bodied as now find themselves increasingly at peril.
In May, California Pettifogger Hard-shell Xavier Becerra, furthermore with inner-city counselors of Los Angeles, San Francisco, as able-bodied as San Diego, sued the companies, arguing that their drivers were misclassified as indisputable contractors when they listen to be employees under the state's AB5 law that went into effect on January 1st. Becerra recently filed a motion for a preliminary injunction that could bulldoze the ride-hailing companies to reclassify drivers as employees immediately. California's state curtilage is faddy to aphorism on the pettifogger general's preliminary reminder on Thursday.
These latest lawsuits are of a agnate vein. The state's life commissioner has sanctioned nigh 5,000 claims from drivers for minded wages. Loosely Garcia-Brower is seeking to recover accomplishment owed to all of the state's Uber as able-bodied as Lyft drivers, as able-bodied as expenses for a advanced rondure of approved violations as able-bodied as damages.
If drivers were classified as employees, Uber as able-bodied as Lyft would be responsible for productive them minimum wage, overtime compensation, paid rest periods, as able-bodied as reimbursements for the echelon of driving for the companies, including personal vehicle mileage. Loosely as indisputable contractors, drivers understand none of these benefits.
In a statement, Uber personal the lawsuit is inadept considering of the coronavirus pandemic. "The all-inclusive majority of California drivers appetite to work independently, as able-bodied as we've already fabricated significant changes to our app to ensure that remains the bewailing under state law," an Uber spokesperson said in a statement. "When 3 million Californians are after a job, our leaders listen to be focused on creating work, not trying to shut fuzz an entire industry." A Lyft spokesperson did not prematurely respond to a appeal for comment.
This flurry of lawsuits as able-bodied as curtilage rulings comes antecedently of the November election, when California voters will vote on an Uber-and-Lyft-backed ballot proportion that would override AB5 by classifying ride-hail drivers as able-bodied as over-and-above gig lack workers as indisputable contractors.
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