California and three of its largest cities on Tuesday sued Uber Technologies Inc and Lyft Inc , accusing them of classifying their drivers improperly as independent contractors instead of employees, evading workplace protections and withholding worker benefits.
), accusing them of classifying their drivers improperly as independent contractors instead of employees, evading workplace protections and withholding worker benefits.
The controversial law strikes at the heart of the business model of technology platforms like Uber, Postmates, Lyft, DoorDash and others who rely heavily on the state’s 450,000 contract workers, not full-time employees, to drive passengers or deliver food via app-based services. Lyft in a statement said it would work with the attorney general and mayors, “to bring all the benefits of California’s innovation economy to as many workers as possible.”
California Attorney General Xavier Becerra said Uber and Lyft drivers lacked basic worker protections, including sick leave and overtime payment, with the lack of a safety net laid bare during the coronavirus crisis.
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