California Attorney General Xavier Becerra, along with municipal attorneys from three cities in the state, is suing Lyft and Uber for allegedly misclassifying drivers as independent contractors. The attorney general and city attorneys claim the move deprives drivers of workplace protections, and the group is pursuing restitution, civil penalties, and a permanent stop to the alleged misclassification in a lawsuit filed in the Superior Court of San Francisco per a press release.
“Californians who drive for Uber and Lyft lack basic worker protections, from paid sick leave to the right to overtime pay. Uber and Lyft claim their drivers aren’t engaged in the companies’ core mission and cannot qualify for benefits,” Becerra said in the press release. “Sometimes it takes a pandemic to shake us into realizing what that really means and who suffers the consequences. Uber and Lyft drivers who contract the coronavirus or lose their job quickly realize what they’re missing.”
The attorney general and the city attorneys allege that Lyft and Uber attained a competitive advantage that was not fair or lawful by not correctly classifying large numbers of drivers in the state. They claim that the firms each steered clear of social safety net obligations. The lawsuit seeks as much as US$2,500 for every California Unfair Competition Law violation as much another US$2,500 as an additional for violations made against those with disabilities or senior citizens.
San Francisco City Attorney Dennis Herrera said in the press release, “These companies are headquartered in San Francisco. We are going to police our own to ensure the law is followed, workers are protected, and the marketplace is fair.” Herrera continued, “We have been building this case for months in partnership with the California Attorney General and our counterparts in Los Angeles and San Diego.”
Lyft responded in a statement, saying, “We are looking forward to working with the Attorney General and mayors across the state to bring all the benefits of California’s innovation economy to as many workers as possible, especially during this time when the creation of good jobs with access to affordable healthcare and other benefits is more important than ever.”
In March, news surfaced that a petition by Lyft, Uber, and DoorDash to roll back a California law involving gig economy workers had amassed 1 million signatures and would head to voters at the ballot box this year.
Full Content: PYMNTS
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Electrolux Fined €44.5 Million in French Antitrust Case
Dec 19, 2024 by
CPI
Indian Antitrust Body Raids Alcohol Giants Amid Price Collusion Probe
Dec 19, 2024 by
CPI
Attorneys Seek $525 Million in Fees in NCAA Settlement Case
Dec 19, 2024 by
CPI
Italy’s Competition Watchdog Ends Investigation into Booking.com
Dec 19, 2024 by
CPI
Minnesota Judge Approves $2.4 Million Hormel Settlement in Antitrust Case
Dec 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – CRESSE Insights
Dec 19, 2024 by
CPI
Effective Interoperability in Mobile Ecosystems: EU Competition Law Versus Regulation
Dec 19, 2024 by
Giuseppe Colangelo
The Use of Empirical Evidence in Antitrust: Trends, Challenges, and a Path Forward
Dec 19, 2024 by
Eliana Garces
Some Empirical Evidence on the Role of Presumptions and Evidentiary Standards on Antitrust (Under)Enforcement: Is the EC’s New Communication on Art.102 in the Right Direction?
Dec 19, 2024 by
Yannis Katsoulacos
The EC’s Draft Guidelines on the Application of Article 102 TFEU: An Economic Perspective
Dec 19, 2024 by
Benoit Durand