RIDESHARING

California Sues Uber and Lyft Over Classification of Drivers Under New Law

A law passed in September establishes standards for classifying employees, and the state alleges the ridehailing companies failed to comply.

California’s attorney general has sued Uber and Lyft for allegedly misclassifying workers as independent contractors, The Wall Street Journal reports. A new California law, passed in September 2019, establishes a test and a set of standards companies must follow when classifying their employees, and the state argues the ridehailing companies failed to comply. Attorney General Xavier Becerra described the companies' classification of workers as “mistreatment” at a press conference, saying that “innovation, regardless of what Uber and Lyft tell you, doesn’t require these companies to mistreat their workers.” The state is seeking millions in civil penalties and backpay for the wages and sick leave it alleges the ridehailing companies failed to pay workers. The companies say their workers are correctly classified.