In a wage-theft lawsuit, California's top labor law enforcer says ride-hailing tech companies have 'willfully' misclassified drivers as independent contractors.
In its latest move to take gig economy companies to task, California is suing Uber and Lyft for alleged wage theft. The state says the companies have “willfully” misclassified drivers as independent contractors instead of employees, depriving them of basic worker protections and wages.
Assembly Bill 5, a landmark California employment law, ramped up the battle over contractor classification of gig economy workers. The law, which took effect Jan. 1, established stricter standards by which workers can be treated as independent contractors rather than employees., pouring millions of dollars into a ballot measure called Proposition 22 that would carve out a third category of work for drivers and essentially grant the companies an exemption from AB 5.
Uber and Lyft often say independent contractor status is a boon to drivers, who want flexible hours and need the work. Although some surveys have shown support from drivers for the companies’ stance, many have pushed back. Since February, more thanagainst the companies, alleging Uber and Lyft owe them more than $630 million in wages, expenses and damages.
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