Press Release 7/15/20: Uber, Lyft Sink Deeper into Legal Troubles as Massachusetts Attorney General Mounts New Lawsuit
Sacramento, CA – In case you missed the news, Massachusetts Attorney General Maura Healey took tech giants Uber and Lyft to task in a new lawsuit that holds the app companies accountable for misclassifying their workers as contractors instead of employees. Healey announced the lawsuit in a compelling video on Tuesday morning.
“Billion-dollar companies don’t get to pick and choose what laws they follow,” Attorney General Healey says in the announcement. “For years, Uber and Lyft have built their billion-dollar businesses on a model that exploits drivers. What this means is that they don’t pay drivers minimum wage or overtime, they don’t give them paid time off when they’re sick. Not only is it unfair and exploitative, it’s illegal.”
This news comes roughly two months after California’s own Attorney General Xavier Becerra teamed up with City Attorneys from San Francisco, Los Angeles, and San Diego to sue Uber and Lyft as well. Both states are demanding that the companies comply with existing laws that require app companies classify their workers as employees, and pay their fair share into basic benefits and protections like healthcare, workers’ compensation, paid sick leave, Social Security, and unemployment insurance.
But the billion-dollar app companies are digging in, at least in California. Uber and Lyft have teamed up with DoorDash to buy themselves Proposition 22 – a November ballot measure that would create a special exemption for the companies to continue misclassifying their workers for profit.