NY Ordered to Process Lyft and Uber Unemployment Insurance Claims

A Brooklyn federal judge has ordered the New York labor department to process emergency unemployment insurance claims for Uber and Lyft drivers.

The order came out of a lawsuit filed by several Uber and Lyft drivers against the governor and labor commissioner of New York in May 2020, claiming that the state of New York has delayed their access to unemployment benefits and may be in violation of the Social Security Act, as well as the U.S. Constitution. The drivers are also seeking retroactive benefits for the amount of time their requests have been delayed.

Uber and Lyft Drivers v. New York Governor and Labor Commissioner

Plaintiffs and drivers MD I., Doh O., Abdul R., Harnek S., as well as the New York Taxi Workers Alliance filed their lawsuit against New York Governor Andrew Cuomo and New York Commissioner of Labor Roberta Reardon in May 2020.

According to the drivers, the state has disregarded a 2018 ruling declaring that Uber drivers are employees, rather than independent contractors. Instead of complying with this ruling and enforcing the reclassification of misclassified employees, the plaintiffs claim that the state has continued to treat them as independent contractors and allowed their employers to continue to classify them as such.

This has led to denials of employment benefits and other privileges afforded to employees. According to the drivers, their COVID-19 emergency unemployment requests have been stalled by the state, as well as by their employers.

Uber and Lyft have allegedly refused to hand over wage and earning information for gig workers, delaying the disbursal of benefits. According to the plaintiffs, the loss of these benefits has caused them irreparable harm. As many drivers are unable to work due to the coronavirus pandemic, the plaintiffs claim they have been left without savings, income, or options.

About Worker Unemployment Insurance Claims and Other Benefits

Due to the expansion of gig work occupations, as well as rampant financial instability caused by the coronavirus pandemic, many workers may be wondering what their classification has to do with their legal rights and protections. Classification plays a major role in the rights and protections you are afforded by the government when it comes to your job.

There are generally two categories of workers. While workers classified as employees are afforded many privileges and protections, workers classified as independent contractors do not have as many legal rights. When it comes to wage benefits and unemployment insurance claims, this is especially true.

As it costs employers approximately 30 percent more to hire employees rather than independent contractors, some employers may be incentivized to purposefully misclassify workers as contractors. By doing so, employers may be able to deny workers benefits such as minimum wage, overtime pay, health insurance, and unemployment benefits.

Under normal circumstances, most independent contractors are not eligible to receive unemployment benefits. However, due to the signing of the CARES Act in March 2020, states currently have the option of extending these benefits to workers who are usually not eligible to receive them. Despite this, some Uber and Lyft drivers claim that these benefits are still being withheld from them.

If you are an Uber or Lyft driver and believe you have been misclassified as an independent contractor or have been denied unemployment benefits, you may be able to speak with an experienced attorney about your legal rights.

The Uber and Lyft Unemployment Claims Lawsuit is Case No: 1:20-cv-02328, in the U.S. District Court for the Eastern District of New York

Join a Free Uber Lyft Misclassification Class Action Lawsuit Investigation

If you are an Uber or Lyft driver (active or inactive), you may have been misclassified as an independent contractor, and you may qualify to join this Uber Lyft Driver Misclassification Class Action Lawsuit Investigation.

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This article is not legal advice. It is presented
for informational purposes only.