The lawsuit is the first big test of a new state law that poses a serious threat to the ride-hailing apps' business models.David Paul Morris/Bloomberg via Getty Images
The lawsuit is the first big test of a new state law that poses a serious threat to the ride-hailing apps' business models.The state of California is suing Uber and Lyft for classifying their drivers as contractors instead of employees. The lawsuit is the first major test of a new state law intended to give gig workers more labor protections, including access to employer-sponsored health insurance.
"Uber and Lyft both claim that their drivers aren't engaged in the company's core mission and therefore qualify for benefits," said Xavier Becerra, the state's attorney general, at a press conference on Tuesday."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 that don't know what to do next.
Becerra said the companies are also harming taxpayers by classifying drivers as contractors rather than employees. The companies do not pay"hundreds of millions of dollars in social safety net obligations," or state payroll taxes, he said. The state is seeking penalties that it estimates could reach"hundreds of millions of dollars." It also wants the companies to pay restitution to hundreds of thousands of drivers in California.
Source: Law Daily Report (lawdailyreport.net)
Considering how California mismanages their money, this is the only way they can 'make money'. If they win they'll just squander it on something completely useless. GET A HANDLE ON YOUR HOMELESS CRISIS, YOU TOOLS!!
Little justice for the cab drivers. Dig it.
Mandating masks in another of many factors demonstrating the type of control typical of an employer.
they're not employees employees have to do what you tell them Uber and Lyft people work whenever they want and take whatever fares they want and turn down what they don't want
They AREN'T employees if they can pick and choose what jobs to take. Plain and simple. Getting the freedom to choose your work is what INDEPENDENT CONTRACTORS have. Not employees. Enjoy the higher unemployment as a lot of driving monkeys will no longer be working w/Uber and Lyft.
Wonderful. They depress prices for cabs, skim the profits and stick their drivers with costs and pay them pitily when they get customers and pay them nothing. To pour salt on wounds Ubber used the insane profits to develop driverless cars!
a no brainer
Killing jobs as usual because they want to unionize. California sucks.
Time to consider dumping my Uber stock...
It needs the money.
They ARE contractors. The millions of dollars belong in the employees’ pockets, not California‘s coffers.
This is how fascism and a police state works.
Good
Uber will go out of business.
When are Uber or Lyft not in court? They are fuckin shysters.
Heading to the courts!
Oh man I knew this was coming, I didn't realize so soon!
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California sues Uber, Lyft over misclassifying drivers as contractorsCalifornia 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. What an interesting development. Idk if Uber or Lyft can survive if their drivers are treated like standard company employees. If the driver is driving for more than 32 hours a week (the threshold for being a full-time employee) then they should be a 'employee' versus being part-time and being considered a 'contractor'. Good on them. Labour arbitration as a business model, where companies try to avoid their responsibilities toward their employers, must be stamped on aggressively.
Source: Reuters - 🏆 2. / 97 Read more »
California Sues Uber, Lyft For Not Making Drivers EmployeesI’m a San Francisco-based reporter covering breaking news at Forbes. I’ve previously reported for USA Today, Business Insider, The San Francisco Business Times and San Jose Inside. I studied journalism at Syracuse University’s S.I. Newhouse School of Public Communications and was an editor at The Daily Orange, the university’s independent student newspaper. Follow me on Twitter rachsandl or shoot me an email rsandlerforbes.com. rachsandl Watch the California gig economy dry up in three, two, one.... rachsandl Leave it to government to kill the ride-sharing industry. Was this pressure from big donor taxi companies or just typical leftist intervention into the market to collect more taxes?
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California Sues Uber, Lyft Saying They Misclassified Drivers as Independent ContractorsCalifornia sued the companies for allegedly misclassifying their drivers as independent contractors instead of employees, a move that intensifies a battle between the ride-hailing giants and their home state. Is California keep up most businesses will leave the state And they should sue California/Newsom for forcing them to close all their businesses California is constantly suing everyone that they can. It's how the state pays their bills. 🙄
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California is suing Uber and Lyft over alleged worker misclassificationUber and Lyft were hit with a fresh lawsuit on Tuesday by California Attorney General Xavier Becerra and a coalition of city attorneys who allege the companies are misclassifying their workers in violation of a new state law. Uber is vampire 🧛♂️ that have been sucking blood 🩸 of drivers for last 8 years. They must payback.
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Uber may require drivers and passengers to wear masks in the US - Business InsiderUber is also developing tech for checking whether drivers are wearing masks. May? It should be mandatory everywhere. Its about keeping one another safe. Should not may
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Uber and Lyft face landmark lawsuit over gig worker classificationCalifornia AG Becerra files lawsuit against Uber and Lyft, alleging that they have evaded state law by declaring their workers to be contractors rather than employees. Hopefully the state can win this one. They are contractors. The drivers are fully aware of the conditions surrounding their working classification with Uber/Lyft when they agreed to their terms. If they don’t like it, don’t drive for them. Another example of government making it hard for business to do business.
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