The California Labor Commissioner’s Office is filing separate lawsuits against ride-sharing apps Uber and Lyft after workers in the state raised concerns about their classification as independent contractors.
On Wednesday, the state’s Department of Industrial Relations announced the lawsuits were needed to protect the labor rights of contractors at the two companies who work without a bevy of benefits that some believe should be protected under California state law.
“The Uber and Lyft business model rests on the misclassification of drivers as independent contractors,” California Labor Commissioner Lilia García-Brower said in a statement. “This leaves workers without protections such as paid sick leave and reimbursement of drivers’ expenses, as well as overtime and minimum wages.”
If Uber and Lyft were forced to classify the contractors as employees, the two companies would have to pay minimum wage, provide paid rest periods, compensate for overtime work, and reimburse for the cost of driving while on the clock.
Officials at Uber, however, said the lawsuits pose a threat to the ride-sharing industry and suggested state lawmakers should be more concerned with creating new businesses rather than penalizing ones already in existence.
“The vast majority of California drivers want to work independently, and we’ve already made significant changes to our app to ensure that remains the case under state law,” an Uber representative told the Verge. “When 3 million Californians are without a job, our leaders should be focused on creating work, not trying to shut down an entire industry.”
