California to sue Uber and Lyft, alleging workers should be employees under state law
Source: Washington Post
Technology
California to sue Uber and Lyft, alleging workers should be employees under state law
Workers have long complained about low wages and the lack of benefits such as sick pay and health care.
By Faiz Siddiqui
May 5, 2020 at 3:18 p.m. EDT
California plans to sue Uber and Lyft, the state attorney general said Tuesday, arguing the companies have failed to abide by a landmark law that would reclassify many gig workers as employees.
Attorney General Xavier Becerra announced the state’s plans, saying the ride-hail companies were allegedly engaged in “misclassifying hundreds of thousands of drivers, depriving them of worker protections and access to safety net programs” under the law, which went into effect in January.
Uber’s project to bolster its case against AB5, California’s gig-worker law
The law prescribes a three-prong test to establish that a worker is an independent contractor, including demonstrating the worker is free from a company’s control, is performing a function outside its core business and already performs such work independently.
Uber spokesman Matthew Wing said the company plans to contest the matter in court. “At a time when California’s economy is in crisis with four million people out of work, we need to make it easier, not harder, for people to quickly start earning,” he said in a statement.
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Faiz Siddiqui
Faiz Siddiqui is a reporter with The Washington Post's technology team. His coverage includes Silicon Valley's ride-hailing giants, nascent mobility startups and companies deploying electric and self-driving vehicles. Follow https://twitter.com/faizsays
Read more: https://www.washingtonpost.com/technology/2020/05/05/california-sue-uber-lyft-alleging-workers-should-be-employees-under-state-law/
California to sue Uber and Lyft, alleging workers should be employees under state law
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