California sues Uber, Lyft over misclassifying drivers as contractors


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California sues Uber, Lyft over misclassifying drivers as contractors

On Tuesday, the 5th of May 2020, California alongside three of the largest cities in the United States such as Los Angeles, San Francisco and San Diego, had filed a lawsuit against the ride hailing pioneer Uber Technologies alongside its smaller rival Lyft Inc., accusing the San Francisco-based ride-sharing service providers of misclassifying their drivers as independent contractors instead of company employees, a loophole in the core of the ride-sharing service providers which had been insulating them from evading workers’ benefits alongside workspace protections.

As a matter of fact, the lawsuit filed on Tuesday (May 5th) by four US cities, had been doodled under a new state law aimed at protecting workers in a havoc-scale gig economy in the United States, which largely depends on flexible, temporary and freelance jobs, while the lawsuit brought against Lyft Inc.

and Uber Technologies had claimed that the aforementioned companies’ falsified classification had harmed workers, businesses, taxpayers alongside the society. On top of that, as the argumentative law had harpooned the operational core of the technology platforms likes of Uber, Lyft and others which were relying heavily on California’s 450,000 contract workers to conduct app-based food delivery services or to drive passengers, California’s Attorney General, Xavier Becerra said in a virtual news conference with other counterparts of the lawsuit on Tuesday (May 5th), “No business model should hang its success on mistreating workers and violating the law,” adding that Uber and Lyft drivers were being deprived of basic worker protections such as overtime payments and sick leaves.