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California Attorney General (& Several City Attorneys) Sue Uber & Lyft Over Alleged Misclassification


Yesterday, California Attorney General Xavier Becerra, joined by city attorneys from San Diego, Los Angeles, and San Francisco, filed suit against Uber & Lyft on the grounds that the companies misclassified its workers as independent contractors thereby denying them minimum wage, overtime pay, and other benefits.

Readers might recall that this whole brouhaha came about when the Dynamex decision was issued by the California Supreme Court a few years ago.  That case established the ABC Test to determine whether a worker was an independent contractor or an employee.  Unfortunately for employers in the state, the ABC Test made it easier to determine that a worker was an employee.  Sensing this ABC Test could be challenged (and eventually overturned in court), the California Legislature introduced Assembly Bill 5 (aka AB 5) to codify the ABC Test.  When the California Legislature passed AB 5 and Governor Gavin Newsom signed it into law, there was immediate opposition.

Let us call this lawsuit by the California Attorney General another stop in the ongoing battle amongst workers in the state and employers, namely gig companies.  The lawsuit alleges that Uber & Lyft misclassified its workers as independent contractors in violation of AB 5.  The lawsuit seeks an injunction on the misclassification and restitution on behalf of the workers that were allegedly misclassified.

Keep an eye on this one.


For additional information:  https://www.cnbc.com/amp/2020/05/05/california-ag-cities-sue-uber-and-lyft-over-worker-classification.html?__twitter_impression=true

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