(Reuters) – 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.
FILE PHOTO: An Uber sticker is seen on driver Margaret Bordelon’s car in Lafayette, Louisiana, U.S. February 16, 2020. Picture taken February 16, 2020. REUTERS/Callaghan O’Hare
The suit, joined by Los Angeles, San Francisco and San Diego, was brought under a new state law intended to protect workers in the so-called gig economy. It argued the companies’ misclassification harms workers, law-abiding businesses, taxpayers, and society more broadly.
The controversial law strikes at the heart of the business model of technology platforms like Uber, Lyft, Postmates, 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…
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