California Sues Uber and Lyft for Calling Their Drivers 'Contractors'

The state of California has filed lawsuits against Uber and Lyft, claiming that the ride share companies are robbing their drivers of "hundreds of millions of dollars" in benefits by classifying them as "contractors" instead of "employees."

"Uber and Lyft both claim that their drivers aren't engaged in the company's core mission and therefore don't qualify for benefits," said California Attorney General Xavier Becerra. "If drivers in California contract the coronavirus or if they lose their job as a result, guess what? They're the ones that go missing. They're the ones who have to worry about how they'll pay their bills."

The lawsuit calls for "hundreds of millions of dollars" in penalties and restitution for those Uber and Lyft drivers. In response to the suit, Uber issued a statement that took a shot at the state's effort to protect workers...

"At a time when California's economy is in crisis with four million people out of work, we need to make it easier, not harder, for people to quickly start earning," the statement read.

However, in a response statement released by Lyft, they claimed their company was “looking forward to working with the Attorney General and mayors across the state to bring all the benefits of California’s innovation economy to as many workers as possible, especially during this time when the creation of good jobs with access to affordable healthcare and other benefits is more important than ever.”

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Read the full report on The Los Angeles Times.

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