Press Release 6/24/20: Breaking: Attorney General Cracks Down on Uber and Lyft’s Unfair Misclassification of Workers
Sacramento, CA – Uber and Lyft suffered another major blow to their worker misclassification scheme today when the Attorney General of California announced action to require the app companies to immediately start following the law and begin to classify their drivers as employees instead of contractors.
“The gig is up on the Uber, Lyft, and Doordash’s refusal to deal with their workers fairly. Today’s action by the Attorney General is another strong signal to voters that these companies will do anything — including breaking the law — in order to boost their profits, said Bob Schoonover, President of SEIU California and SEIU Local 721. “Now these companies have bought and paid for a proposition on the November ballot to keep exploiting workers. A NO vote means ensuring app companies play by the same rules as all other businesses and afford their workers basic rights like the minimum wage, workers’ compensation, and sick pay.”
Today’s announcement comes as the companies face ongoing legal action because they have been circumventing the law for years to avoid paying for basic worker protections and benefits like healthcare, unemployment insurance, minimum wage, and workers’ compensation.The state’s intent to file an injunction follows a lawsuit filed by Attorney General Xavier Becerra and the city attorneys for San Francisco, Los Angeles, and San Diego in May, after determining that Uber and Lyft had been breaking California law by misclassifying drivers as independent contractors since the companies began operating in the state. In mid-June, San Francisco District Attorney Chesa Boudin announced taking Doordash to court to compel the company to comply with state law and provide benefits and basic protections for their workers.