Uber, Lyft Each Face Wage Theft Lawsuit Filed by California Labor Commissioner’s Office

California’s Labor Commissioner’s Office has filed a separate wage theft lawsuit against Uber and Lyft, alleging the rideshare companies misclassified drivers as independent contractors instead of as employees.

The Labor Commissioner’s Office believes Uber and Lyft each have more than 100,000 drivers working for them in the state of California right now, and nearly 5,000 drivers have filed claims for owed wages. All California Uber and Lyft drivers would benefit from amounts collected in the lawsuits.

The Labor Commissioner is seeking the collection of the following items that allegedly are owed to Uber and Lyft drivers:

• unpaid wages
• liquidated damages
• penalties owed to drivers
• business expense reimbursements in line with the California Expense Reimbursement Law

“The Uber and Lyft business model rests on the misclassification of drivers as independent contractors,” said California Labor Commissioner Lilia García-Brower in a press release from the state’s Department of Industrial Relations. “This leaves workers without protections such as paid sick leave and reimbursement of drivers’ expenses, as well as overtime and minimum wages.”

Wage Theft Lawsuit Allegations

Effective New Year’s Day of this year, California adopted an ABC test to determine whether a worker is an employee or an independent contractor. The ABC Test became law through the 2019 passage and signing into law of Assembly Bill 5, also known as AB5. To remain under the status of independent contractor, a worker must A) offer the type of work they perform to other businesses, B) perform tasks separate from those performed by the employer’s business, and C) work free of the company’s control.

For example, if a large law office decides the building’s windows need washing, the law office may hire an independent contractor who owns his own window washing business. In this case, the independent contractor does not participate in the business of the company that hired him, does not report to anyone at the law office, and performs such cleaning duties for other types of businesses and homes throughout the community.  The window washer meets the criteria as an independent contractor.

The California Labor Commissioner’s Office filed the wage theft lawsuit paperwork in Alameda County Superior Court, requesting the court to order the ridesharing companies to classify their workers as employees, which would allow the workers to enjoy the protections provided under the Labor Code.

Labor laws require employers to pay employees no less than minimum wage and to provide overtime pay, paid rest breaks, paid sick leave and accurate and itemized wage deduction statements. Drivers also should be reimbursed for the costs of the equipment they need to complete their work in addition to work-related mileage on their own personal vehicles they use to perform their job.

As employees, Uber and Lyft drivers would also be paid for the time spent between driving assignments during their shifts.

Uber and Lyft have long argued they are technology platforms, not transportation companies, but labor regulators don’t buy that argument.

At a press conference last fall, Uber’s Chief Legal Officer Tony West told reporters from Time and other publications, “Drivers’ work is outside the usual course of Uber’s business, which is serving as a technology platform for several different types of digital marketplaces.”

The ride-hailing companies also have tried to argue that most of their drivers prefer to work as independent contractors.

The Hill reports that an Uber spokesperson would not comment on the lawsuit because they had yet to be served, but did say, “The vast majority of California drivers want to work independently, and we’ve already made significant changes to our app to ensure that remains the case under state law.”

Lyft sent a statement to The Hill, which said, “The state labor agency has botched thousands of claims. They know they don’t have the ability to process these claims, so they sent them into a legal abyss, where they know it will take years to resolve them.”

In November, California voters will have a say on Proposition 22, a ballot measure backed by Uber, Lyft, DoorDash and other gig companies that would ensure drivers for app-based companies are exempt from AB5 and retain their status as independent contractors.

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.