Business • Economy
2020-05-05T18:50:35+00:00

California sues Uber, Lyft alleging they misclassified workers as contractors

California Attorney General Xavier Becerra, along with city attorneys from Los Angeles, San Diego, and San Francisco, filed a lawsuit asserting Uber and Lyft misclassified their drivers as independent contractors under the state's new labor law.

According to the lawsuit, both companies gained an unfair and unlawful competitive advantage by claiming their workers were contractors.

Techcrunch reports the lawsuit, filed in the Superior Court of San Francisco, seeks $2,500 in penalties for each violation, possibly per driver, under the California Unfair Competition Law, and another $2,500 for violations against senior citizens or people with disabilities.

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