Lime E-Scooter Co. Faces New Independent Contractor Lawsuit

Lime E-Scooter is facing a new independent contractor lawsuit, alleging the company wrongfully classified the claimant and other workers as exempt from California minimum wage benefits.

The independent contractor lawsuit was filed by a man from San Mateo, who says he collects electric scooters for the company. In his lawsuit, he argues that he, and similarly situated workers, should be classified as non exempt employees.

This independent contractor lawsuit was filed by Yassin O., who says he has worked for the company since August. Formerly known as LimeBike, San Francisco-based Lime E-Scooter rents dockless electric bicycles and scooters in numerous cities. The company has gotten into hot water over its scooter allegedly becoming a nuisance on city streets.

Yassin works as a “Juicer” for the company. Juicers are people who pick up scooters or electric bicycles that were left by customers. Juicers are then supposed to recharge them and return them to designated parking areas.

According to the independent contractor lawsuit, Yassin and other Juicers are reportedly paid between $2 to $5 per hour. However, the California minimum wage rate is $11 per hour.

The independent contractor lawsuit states that Yassin and other Juicers lose the majority of their wages due to occupational expenses. Non exempt minimum wage workers must be compensated for these expenses under California law, alleges the lawsuit.

Yassin alleges Lime willingly and knowingly violated California labor laws by wrongfully classifying him and other Juicers as independent contractors, making them ineligible for the state’s minimum wage benefits.

Overview of California Wage and Hour Policies

Under California law, an independent contractor is defined as a worker with significant freedoms from the company. This includes how they perform their work, and how they conduct their work outside of the company’s supervision.

Independent contractors must also have an independently established occupation or business within the same nature as the work they perform for the hiring company.

In exchange for these additional freedoms, independent contractors are not entitled to the same rights as employees under California employment laws. Non exempt minimum wage employees are compensated for every expense related to their occupational duties, like uniforms and car maintenance, but independent contractors are not privy to compensation for these expenses.

However, typical non exempt employees are often subject to their employer’s standards when conducting their occupational duties. This includes any uniforms they are required to wear, or if they must get certain tasks done by designated times.

Independent contractors are not entitled to a minimum wage either. Typical non exempt minimum wage benefits under California law consist of a steady $11 per hour pay rate, which is increased to one and one-half times their hourly rate after the employee works for 40 hours in a single week or eight hours in a single day.

In addition, non exempt employees are supposed to be provided 30 minute meal breaks every five hours and a 10 minute rest period every four hours. Employees who are forced to work through their meal breaks, must be compensated an extra hour of pay.

Employers that are found to be in violation of California labor laws, could face significant legal penalties from law enforcement. Misclassifying employees as independent contractors is a common tactic companies reportedly use to try to save money on labor costs.

Yassin is seeking a variety of damages in the independent contractor lawsuit, including compensation for all missing wages and is asking Lime E-Scooter to stop misclassifying workers.

Lime is already facing a class action lawsuit over its scooters being left in the way of pedestrians and presenting safety hazards.

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