Last week, the California Labor Board filed separate lawsuits against Uber and Lyft, alleging the ride-hailing groups have engaged in wage theft.
According to NBC Bay Area, the allegation stems from Uber and Lyft classifying drivers as independent contractors instead of employees — a violation of state labor laws. As independent contractors, drivers are not entitled to basic workplace protections such as paid sick leave, unemployment insurance, minimum wage, or overtime pay.
Since January, Assembly Bill 5 has required companies to determine whether someone is an independent contractor or employee based on three points:
- whether the workers are directed by the company
- whether their work is the same as what the company normally does
- whether it is the worker's usual work.
The Labor Board's lawsuit seeks to recover lost wages from over 100,000 drivers for the two companies.